Critical Comparison: Inpex (OTCMKTS:IPXHY) & Cross Timbers Royalty Trust (NYSE:CRT)

Inpex (OTCMKTS:IPXHY) and Cross Timbers Royalty Trust (NYSE:CRT) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inpex	21.93%	8.53%	5.51%
Cross Timbers Royalty Trust	74.04%	147.68%	81.96%

Risk and Volatility

Inpex has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Cross Timbers Royalty Trust has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.

Earnings and Valuation

This table compares Inpex and Cross Timbers Royalty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inpex	$13.45 billion	2.20	$2.52 billion	$2.38	10.48
Cross Timbers Royalty Trust	$5.79 million	14.38	$6.15 million	$0.53	26.19

Inpex has higher revenue and earnings than Cross Timbers Royalty Trust. Inpex 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for Inpex and Cross Timbers Royalty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inpex	0	3	0	0	2.00
Cross Timbers Royalty Trust	0	1	0	0	2.00

Insider and Institutional Ownership

0.0% of Inpex shares are held by institutional investors. Comparatively, 9.7% of Cross Timbers Royalty Trust shares are held by institutional investors. 9.4% of Cross Timbers Royalty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Inpex pays an annual dividend of $0.42 per share and has a dividend yield of 1.7%. Cross Timbers Royalty Trust pays an annual dividend of $0.77 per share and has a dividend yield of 5.5%. Inpex pays out 17.6% of its earnings in the form of a dividend. Cross Timbers Royalty Trust pays out 145.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Cross Timbers Royalty Trust beats Inpex on 8 of the 13 factors compared between the two stocks.

About Inpex

Inpex Corporation engages in the research, exploration, development, production, and sale of oil, natural gas, and other mineral resources in Japan, rest of Asia and Oceania, Europe and NIS countries, the Middle East and Africa, and the Americas. The company is involved in the investment and lending to the companies engaged in mineral resources business, etc. It also transports natural gas, as well as operates, manages, and maintains gas pipelines. In addition, the company engages in storage of carbon capture related business. Further, it is involved in hydrogen and ammonia, renewable energy, forest conservation, and carbon recycling related businesses. Inpex Corporation was founded in 1966 and is headquartered in Tokyo, Japan.

About Cross Timbers Royalty Trust

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.