Alvopetro Energy (OTCMKTS:ALVOF – Get Free Report) and Kimbell Royalty Partners (NYSE:KRP – Get Free Report) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.
Institutional and Insider Ownership
25.8% of Kimbell Royalty Partners shares are owned by institutional investors. 5.6% of Kimbell Royalty Partners 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.
Valuation & Earnings
This table compares Alvopetro Energy and Kimbell Royalty Partners’ gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Alvopetro Energy | $59.69 million | 2.13 | $28.52 million | $0.76 | 4.58 |
Kimbell Royalty Partners | $294.07 million | 5.19 | $66.54 million | $0.92 | 17.53 |
Profitability
This table compares Alvopetro Energy and Kimbell Royalty Partners’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Alvopetro Energy | 47.79% | 42.00% | 33.43% |
Kimbell Royalty Partners | 20.45% | 8.98% | 5.11% |
Volatility & Risk
Alvopetro Energy has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Kimbell Royalty Partners has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Alvopetro Energy and Kimbell Royalty Partners, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Alvopetro Energy | 0 | 0 | 0 | 0 | N/A |
Kimbell Royalty Partners | 0 | 0 | 6 | 1 | 3.14 |
Kimbell Royalty Partners has a consensus target price of $21.00, suggesting a potential upside of 30.19%. Given Kimbell Royalty Partners’ higher probable upside, analysts clearly believe Kimbell Royalty Partners is more favorable than Alvopetro Energy.
Dividends
Alvopetro Energy pays an annual dividend of $0.36 per share and has a dividend yield of 10.3%. Kimbell Royalty Partners pays an annual dividend of $1.72 per share and has a dividend yield of 10.7%. Alvopetro Energy pays out 47.4% of its earnings in the form of a dividend. Kimbell Royalty Partners pays out 187.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
Kimbell Royalty Partners beats Alvopetro Energy on 12 of the 16 factors compared between the two stocks.
About Alvopetro Energy
Alvopetro Energy Ltd. engages in the acquisition, exploration, development, and production of hydrocarbons. It holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. The company was incorporated in 2013 and is headquartered in Calgary, Canada.
About Kimbell Royalty Partners
Kimbell Royalty Partners, LP, together with its subsidiaries, engages in acquiring and owning mineral and royalty interests in oil and natural gas properties in the United States. It serves as the general partner of the company. The company was incorporated in 2015 and is based in Fort Worth, Texas.
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