Financial Analysis: Cross Timbers Royalty Trust (CRT) vs. Its Rivals

Earnings & Valuation

This table compares Cross Timbers Royalty Trust and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cross Timbers Royalty Trust	$6.62 million	$6.54 million	9.94
Cross Timbers Royalty Trust Competitors	$82.64 million	$18.27 million	26.45

Cross Timbers Royalty Trust’s rivals have higher revenue and earnings than Cross Timbers Royalty Trust. Cross Timbers Royalty Trust is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cross Timbers Royalty Trust	87.50%	243.41%	150.00%
Cross Timbers Royalty Trust Competitors	57.69%	1,199.90%	167.41%

Insider & Institutional Ownership

9.7% of Cross Timbers Royalty Trust shares are owned by institutional investors. Comparatively, 30.4% of shares of all “OIL – US RYLTY TR” companies are owned by institutional investors. 9.4% of Cross Timbers Royalty Trust shares are owned by company insiders. Comparatively, 5.0% of shares of all “OIL – US RYLTY TR” companies are owned by company 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.

Dividends

Cross Timbers Royalty Trust pays an annual dividend of $0.97 per share and has a dividend yield of 9.9%. Cross Timbers Royalty Trust pays out 98.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “OIL – US RYLTY TR” companies pay a dividend yield of 9.1% and pay out 133.4% of their earnings in the form of a dividend. Cross Timbers Royalty Trust is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Risk & Volatility

Cross Timbers Royalty Trust has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Cross Timbers Royalty Trust’s rivals have a beta of 0.33, meaning that their average stock price is 67% less volatile than the S&P 500.

Summary

Cross Timbers Royalty Trust rivals beat Cross Timbers Royalty Trust on 7 of the 11 factors compared.

Cross Timbers Royalty Trust Company Profile

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 working interest in four properties in Texas and three properties in Oklahoma. The company was founded in 1991 and is based in Dallas, Texas.