Critical Survey: Rice Midstream Partners (RMP) vs. Kimbell Royalty Partners (KRP)
Rice Midstream Partners (NYSE: RMP) and Kimbell Royalty Partners (NYSE:KRP) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.
This is a breakdown of current ratings and target prices for Rice Midstream Partners and Kimbell Royalty Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rice Midstream Partners||0||16||2||0||2.11|
|Kimbell Royalty Partners||0||1||3||0||2.75|
Institutional & Insider Ownership
74.0% of Rice Midstream Partners shares are held by institutional investors. Comparatively, 28.4% of Kimbell Royalty Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Rice Midstream Partners and Kimbell Royalty Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rice Midstream Partners||59.43%||11.37%||9.70%|
|Kimbell Royalty Partners||3.99%||0.46%||0.42%|
Earnings and Valuation
This table compares Rice Midstream Partners and Kimbell Royalty Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rice Midstream Partners||$294.69 million||6.52||$177.97 million||$1.72||10.92|
|Kimbell Royalty Partners||$30.97 million||9.57||$1.21 million||N/A||N/A|
Rice Midstream Partners has higher revenue and earnings than Kimbell Royalty Partners.
Rice Midstream Partners pays an annual dividend of $1.17 per share and has a dividend yield of 6.2%. Kimbell Royalty Partners pays an annual dividend of $1.44 per share and has a dividend yield of 8.0%. Rice Midstream Partners pays out 68.0% of its earnings in the form of a dividend. Rice Midstream Partners has raised its dividend for 2 consecutive years.
Rice Midstream Partners beats Kimbell Royalty Partners on 8 of the 13 factors compared between the two stocks.
About Rice Midstream Partners
Rice Midstream Partners LP owns, operates, develops and acquires midstream assets in the Appalachian Basin. The Company’s segments are gathering and compression, and water services. The gathering and compression segment provides natural gas gathering and compression services for Rice Energy Inc. (Rice Energy) and third parties in the Appalachian Basin. The water services segment provides water services to support well completion activities, and to collect and recycle or dispose of flowback and produced water for Rice Energy and third parties in the Appalachian Basin. Its gas gathering and compression assets are located within the dry gas core of the Marcellus Shale and, consists of approximately 3.3 million dekatherms per day (MMDth/d) high-pressure dry gas gathering system and associated compression in Washington County, Pennsylvania, and an approximately 840 thousand dekatherms per day (MDth/d) high-pressure dry gas gathering system in Greene County, Pennsylvania.
About Kimbell Royalty Partners
Kimbell Royalty Partners, LP owns and acquires mineral and royalty interests in oil and natural gas properties throughout the United States. As of December 31, 2015, the Company owned mineral and royalty interests in approximately 3.7 million gross acres and overriding royalty interests in approximately 0.9 million gross acres, with approximately 44% of its acres located in the Permian Basin. As of December 31, 2015, the Company’s mineral and royalty interests were located in 20 states and in every onshore basin across the continental United States, and included ownership in over 48,000 gross producing wells, including over 29,000 wells in the Permian Basin. The Company’s properties include Permian Basin, Mid-Continent, Terryville/Cotton Valley/Haynesville, Eagle Ford, Barnett Shale/Fort Worth Basin, Bakken/Williston Basin, San Juan Basin, Onshore California, DJ Basin/Rockies/Niobrara, Illinois Basin and others.
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