Kimbell Royalty (NYSE: KRP) and ENI (NYSE:E) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Profitability

This table compares Kimbell Royalty and ENI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimbell Royalty N/A 3.00% 2.82%
ENI 2.50% 3.69% 1.54%

Dividends

Kimbell Royalty pays an annual dividend of $1.24 per share and has a dividend yield of 7.5%. ENI pays an annual dividend of $1.31 per share and has a dividend yield of 4.0%. ENI pays out 131.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

21.8% of Kimbell Royalty shares are held by institutional investors. Comparatively, 1.6% of ENI 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.

Valuation and Earnings

This table compares Kimbell Royalty and ENI’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kimbell Royalty N/A N/A -$80,000.00 N/A N/A
ENI $62.74 billion 0.96 -$1.62 billion $1.00 32.98

Kimbell Royalty has higher earnings, but lower revenue than ENI.

Analyst Ratings

This is a summary of recent recommendations for Kimbell Royalty and ENI, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimbell Royalty 0 0 5 1 3.17
ENI 4 3 4 0 2.00

Kimbell Royalty currently has a consensus price target of $21.33, indicating a potential upside of 29.29%. ENI has a consensus price target of $16.00, indicating a potential downside of 51.49%. Given Kimbell Royalty’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Kimbell Royalty is more favorable than ENI.

Summary

Kimbell Royalty beats ENI on 9 of the 12 factors compared between the two stocks.

Kimbell Royalty Company Profile

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.

ENI Company Profile

Eni SpA (Eni) is an Italy-based company engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company’s segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives.

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