Cross Timbers Royalty Trust (NYSE:CRT) and Murphy Oil (NYSE:MUR) Critical Contrast

Murphy Oil (NYSE:MUR – Get Free Report) and Cross Timbers Royalty Trust (NYSE:CRT – Get Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Profitability

This table compares Murphy Oil and Cross Timbers Royalty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Murphy Oil 9.74% 6.63% 3.51%
Cross Timbers Royalty Trust 74.04% 147.68% 81.96%

Analyst Ratings

This is a breakdown of current ratings and price targets for Murphy Oil and Cross Timbers Royalty Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Murphy Oil 3 10 3 0 2.00
Cross Timbers Royalty Trust 0 1 0 0 2.00

Murphy Oil presently has a consensus target price of $37.75, indicating a potential upside of 3.88%. Given Murphy Oil’s higher possible upside, research analysts plainly believe Murphy Oil is more favorable than Cross Timbers Royalty Trust.

Volatility & Risk

Murphy Oil has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Cross Timbers Royalty Trust has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500.

Insider & Institutional Ownership

78.3% of Murphy Oil shares are held by institutional investors. Comparatively, 9.7% of Cross Timbers Royalty Trust shares are held by institutional investors. 5.8% of Murphy Oil shares are held by insiders. Comparatively, 9.4% of Cross Timbers Royalty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Murphy Oil and Cross Timbers Royalty Trust”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Murphy Oil $2.72 billion 1.92 $104.23 million $2.02 17.99
Cross Timbers Royalty Trust $5.79 million 12.93 $6.15 million $0.53 23.55

Murphy Oil has higher revenue and earnings than Cross Timbers Royalty Trust. Murphy Oil is trading at a lower price-to-earnings ratio than Cross Timbers Royalty Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

Murphy Oil pays an annual dividend of $1.40 per share and has a dividend yield of 3.9%. Cross Timbers Royalty Trust pays an annual dividend of $0.81 per share and has a dividend yield of 6.5%. Murphy Oil pays out 69.3% of its earnings in the form of a dividend. Cross Timbers Royalty Trust pays out 152.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Murphy Oil has increased its dividend for 5 consecutive years.

Summary

Murphy Oil beats Cross Timbers Royalty Trust on 9 of the 16 factors compared between the two stocks.

About Murphy Oil

(Get Free Report)

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.

About Cross Timbers Royalty Trust

(Get Free Report)

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.

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