Cross Timbers Royalty Trust (NYSE:CRT) and Mesa Royalty Trust (NYSE:MTR) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

9.8% of Cross Timbers Royalty Trust shares are owned by institutional investors. Comparatively, 14.6% of Mesa Royalty Trust shares are owned by institutional investors. 9.4% of Cross Timbers Royalty Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Cross Timbers Royalty Trust and Mesa Royalty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cross Timbers Royalty Trust 0 0 0 0 N/A
Mesa Royalty Trust 0 0 0 0 N/A

Earnings and Valuation

This table compares Cross Timbers Royalty Trust and Mesa Royalty Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cross Timbers Royalty Trust $6.63 million 12.44 $7.39 million N/A N/A
Mesa Royalty Trust $3.02 million 8.09 $2.93 million N/A N/A

Cross Timbers Royalty Trust has higher revenue and earnings than Mesa Royalty Trust.

Dividends

Cross Timbers Royalty Trust pays an annual dividend of $1.73 per share and has a dividend yield of 12.6%. Mesa Royalty Trust pays an annual dividend of $1.19 per share and has a dividend yield of 9.1%. Mesa Royalty Trust has increased its dividend for 4 consecutive years.

Profitability

This table compares Cross Timbers Royalty Trust and Mesa Royalty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cross Timbers Royalty Trust 93.00% 88.39% 74.94%
Mesa Royalty Trust 93.30% 80.14% 66.76%

Volatility & Risk

Cross Timbers Royalty Trust has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Mesa Royalty Trust has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Summary

Cross Timbers Royalty Trust beats Mesa Royalty Trust on 8 of the 12 factors compared between the two stocks.

About Cross Timbers Royalty Trust

Cross Timbers Royalty Trust operates as an express trust in the United States. It holds 90% net profits interests in certain producing and nonproducing royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico; and 75% net profits interests in certain working interest properties in Texas and Oklahoma. The company was founded in 1991 and is based in Fort Worth, Texas.

About Mesa Royalty Trust

Mesa Royalty Trust holds net overriding royalty interests in various oil and gas properties in the United States. It has interests in properties located in the Hugoton field of Kansas; and the San Juan Basin field of New Mexico and Colorado. The company was founded in 1979 and is based in Houston, Texas.

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