Reviewing Freehold Royalties (OTCMKTS:FRHLF) and Spyglass Resources (OTCMKTS:SGLRF)

Freehold Royalties (OTCMKTS:FRHLF) and Spyglass Resources (OTCMKTS:SGLRF) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Valuation and Earnings

This table compares Freehold Royalties and Spyglass Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freehold Royalties	N/A	N/A	N/A	$1.00	10.05
Spyglass Resources	N/A	N/A	N/A	($0.25)	N/A

Spyglass Resources is trading at a lower price-to-earnings ratio than Freehold Royalties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Freehold Royalties and Spyglass Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freehold Royalties	0	2	1	0	2.33
Spyglass Resources	0	0	0	0	0.00

Freehold Royalties presently has a consensus target price of $16.00, suggesting a potential upside of 59.03%. Given Freehold Royalties’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Freehold Royalties is more favorable than Spyglass Resources.

Insider & Institutional Ownership

37.0% of Freehold Royalties shares are owned by institutional investors. Comparatively, 1.0% of Spyglass Resources shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Freehold Royalties and Spyglass Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freehold Royalties	N/A	N/A	N/A
Spyglass Resources	N/A	N/A	N/A

Dividends

Freehold Royalties pays an annual dividend of $1.82 per share and has a dividend yield of 18.1%. Spyglass Resources pays an annual dividend of $0.26 per share. Freehold Royalties pays out 181.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Spyglass Resources pays out -102.3% of its earnings in the form of a dividend.

Summary

Freehold Royalties beats Spyglass Resources on 7 of the 8 factors compared between the two stocks.

About Freehold Royalties

Freehold Royalties Ltd. engages in the acquiring and managing royalty interests in the crude oil, natural gas, natural gas liquids, and potash properties in Western Canada and the United States. Freehold Royalties Ltd. was founded in 1996 and is headquartered in Calgary, Canada.

About Spyglass Resources

Spyglass Resources Corp., an intermediate oil and gas company, operates oil and natural gas properties in the Western Canadian Sedimentary Basin. The company's principal properties are located in Dixonville, Enchant, Retlaw, Matziwin, and Halkirk-Provost in Alberta; and Noel, British Columbia. The company was formerly known as Pace Oil & Gas Ltd. and changed its name to Spyglass Resources Corp. in March 2013, as result of its amalgamation with Charger Energy Corp. and AvenEx Energy Corp. Spyglass Resources Corp. is headquartered in Calgary, Canada. On November 26, 2015, syndicate of lenders filed an involuntary petition against Spyglass Resources Corp. in the Court of Queen's Bench of Albert. The Court approved the involuntary petition on November 26, 2015.