Reviewing Greenfire Resources (NYSE:GFR) and Kimbell Royalty Partners (NYSE:KRP)

Kimbell Royalty Partners (NYSE:KRP) and Greenfire Resources (NYSE:GFR) are both small-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Valuation & Earnings

This table compares Kimbell Royalty Partners and Greenfire Resources”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 Partners	$310.65 million	4.22	$66.54 million	($0.11)	-111.45
Greenfire Resources	$822.97 million	0.42	-$100.50 million	$1.18	4.23

Kimbell Royalty Partners has higher earnings, but lower revenue than Greenfire Resources. Kimbell Royalty Partners is trading at a lower price-to-earnings ratio than Greenfire Resources, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

25.8% of Kimbell Royalty Partners shares are held by institutional investors. Comparatively, 88.9% of Greenfire Resources shares are held by institutional investors. 5.6% of Kimbell Royalty Partners shares are held by insiders. Comparatively, 20.0% of Greenfire Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Kimbell Royalty Partners and Greenfire Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimbell Royalty Partners	1	3	1	0	2.00
Greenfire Resources	0	0	1	0	3.00

Kimbell Royalty Partners presently has a consensus target price of $17.80, suggesting a potential upside of 45.19%. Greenfire Resources has a consensus target price of $10.50, suggesting a potential upside of 110.42%. Given Greenfire Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Greenfire Resources is more favorable than Kimbell Royalty Partners.

Profitability

This table compares Kimbell Royalty Partners and Greenfire Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimbell Royalty Partners	11.33%	5.82%	3.05%
Greenfire Resources	5.02%	5.40%	3.13%

Risk & Volatility

Kimbell Royalty Partners has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Greenfire Resources has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Summary

Greenfire Resources beats Kimbell Royalty Partners on 7 of the 13 factors compared between the two stocks.

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.

About Greenfire Resources

Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company is headquartered in Calgary, Canada.