Mesa Royalty Trust (MTR) & Its Rivals Financial Review

Risk and Volatility

Mesa Royalty Trust has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Mesa Royalty Trust’s rivals have a beta of 0.32, indicating that their average stock price is 68% less volatile than the S&P 500.

Insider and Institutional Ownership

12.7% of Mesa 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. 5.0% of shares of all “OIL – US RYLTY TR” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Mesa Royalty Trust and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mesa Royalty Trust	$650,000.00	$460,000.00	25.59
Mesa Royalty Trust Competitors	$82.64 million	$18.27 million	29.15

Mesa Royalty Trust’s rivals have higher revenue and earnings than Mesa Royalty Trust. Mesa 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 Mesa Royalty Trust and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mesa Royalty Trust	73.26%	13.48%	13.12%
Mesa Royalty Trust Competitors	57.69%	1,199.90%	167.41%

Dividends

Mesa Royalty Trust pays an annual dividend of $0.45 per share and has a dividend yield of 8.0%. Mesa Royalty Trust pays out 204.5% 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 8.1% and pay out 119.9% of their earnings in the form of a dividend. Mesa Royalty Trust has raised its dividend for 1 consecutive years. Mesa Royalty Trust lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Mesa Royalty Trust rivals beat Mesa Royalty Trust on 9 of the 11 factors compared.

Mesa Royalty Trust Company Profile

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