Kimbell Royalty (KRP) versus The Competition Critical Survey

Kimbell Royalty (NYSE:KRP) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its rivals? We will compare Kimbell Royalty to related businesses based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, profitability, dividends and risk.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Kimbell Royalty	$333.83 million	$90.95 million	19.69
Kimbell Royalty Competitors	$272.96 billion	$5.52 billion	-1.08

Kimbell Royalty’s rivals have higher revenue and earnings than Kimbell Royalty. Kimbell Royalty is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimbell Royalty	0	1	4	1	3.00
Kimbell Royalty Competitors	5982	26997	40855	2423	2.52

Kimbell Royalty presently has a consensus target price of $18.25, indicating a potential upside of 20.38%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 29.19%. Given Kimbell Royalty’s rivals higher probable upside, analysts clearly believe Kimbell Royalty has less favorable growth aspects than its rivals.

Profitability

This table compares Kimbell Royalty and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimbell Royalty	25.39%	14.25%	7.05%
Kimbell Royalty Competitors	-455.90%	20.13%	6.34%

Risk and Volatility

Kimbell Royalty has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Kimbell Royalty’s rivals have a beta of -3.75, suggesting that their average share price is 475% less volatile than the S&P 500.

Institutional and Insider Ownership

25.8% of Kimbell Royalty shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 5.6% of Kimbell Royalty shares are held by company insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Kimbell Royalty pays an annual dividend of $1.88 per share and has a dividend yield of 12.4%. Kimbell Royalty pays out 244.2% 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, Gas & Consumable Fuels” companies pay a dividend yield of 9.1% and pay out -125.1% of their earnings in the form of a dividend.

Summary

Kimbell Royalty beats its rivals on 8 of the 15 factors compared.

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.