Financial Analysis: HighPeak Energy (NASDAQ:HPK) and Natural Resource Partners (NYSE:NRP)

Natural Resource Partners (NYSE:NRP) and HighPeak Energy (NASDAQ:HPK) are both small-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Earnings and Valuation

This table compares Natural Resource Partners and HighPeak Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Resource Partners	$207.28 million	7.23	$136.37 million	$7.84	14.43
HighPeak Energy	$863.36 million	1.55	$18.96 million	($0.79)	-13.35

Natural Resource Partners has higher earnings, but lower revenue than HighPeak Energy. HighPeak Energy is trading at a lower price-to-earnings ratio than Natural Resource Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Natural Resource Partners and HighPeak Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Resource Partners	0	1	0	0	2.00
HighPeak Energy	1	1	0	0	1.50

Risk & Volatility

Natural Resource Partners has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, HighPeak Energy has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Profitability

This table compares Natural Resource Partners and HighPeak Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natural Resource Partners	57.13%	16.65%	13.88%
HighPeak Energy	-10.52%	-1.44%	-0.71%

Insider & Institutional Ownership

31.8% of Natural Resource Partners shares are held by institutional investors. Comparatively, 24.1% of HighPeak Energy shares are held by institutional investors. 35.3% of Natural Resource Partners shares are held by insiders. Comparatively, 5.6% of HighPeak Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Natural Resource Partners beats HighPeak Energy on 10 of the 12 factors compared between the two stocks.

About Natural Resource Partners

Natural Resource Partners L.P., together with its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States. It operates in two segments, Mineral Rights and Soda Ash. The company owns interests in coal, soda ash, trona, and other natural resources. Its coal reserves are primarily located in the Appalachia Basin, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties located in the United States; and oil and gas properties located in Louisiana. The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was incorporated in 2002 and is headquartered in Houston, Texas.

About HighPeak Energy

HighPeak Energy, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids reserves in the Permian Basin in West Texas and Eastern New Mexico. The company was incorporated in 2019 and is headquartered in Fort Worth, Texas.