Sabine Royalty Trust (NYSE:SBR) & Kimbell Royalty (NYSE:KRP) Head to Head Review

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

Volatility & Risk

Sabine Royalty Trust has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, Kimbell Royalty has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Insider & Institutional Ownership

15.8% of Sabine Royalty Trust shares are held by institutional investors. Comparatively, 25.8% of Kimbell Royalty shares are held by institutional investors. 5.6% of Kimbell Royalty shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Sabine Royalty Trust pays an annual dividend of $8.94 per share and has a dividend yield of 12.3%. Kimbell Royalty pays an annual dividend of $1.52 per share and has a dividend yield of 10.9%. Sabine Royalty Trust pays out 177.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimbell Royalty pays out -3,800.0% of its earnings in the form of a dividend.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabine Royalty Trust	$83.17 million	12.71	$79.64 million	$5.04	14.38
Kimbell Royalty	$309.31 million	4.86	$12.32 million	($0.04)	-348.65

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

Analyst Ratings

This is a summary of recent ratings and target prices for Sabine Royalty Trust and Kimbell Royalty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabine Royalty Trust	0	0	0	0	0.00
Kimbell Royalty	1	4	1	0	2.00

Kimbell Royalty has a consensus target price of $17.40, indicating a potential upside of 24.77%. Given Kimbell Royalty’s stronger consensus rating and higher possible upside, analysts plainly believe Kimbell Royalty is more favorable than Sabine Royalty Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sabine Royalty Trust	94.85%	866.81%	819.46%
Kimbell Royalty	10.67%	12.56%	6.36%

About Sabine Royalty Trust

Sabine Royalty Trust holds royalty and mineral interests in various producing oil and gas properties in the United States. Its royalty and mineral interests include landowner's royalties, overriding royalty interests, minerals, production payments, and other similar non-participatory interest in certain producing and proved undeveloped oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. Sabine Royalty Trust was founded in 1982 and is based in Dallas, Texas.

About Kimbell Royalty

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.