Comparing Kimbell Royalty (KRP) and Its Rivals

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Kimbell Royalty and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimbell Royalty	0	1	4	1	3.00
Kimbell Royalty Competitors	5981	26986	40848	2419	2.52

Kimbell Royalty currently 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 28.97%. Given Kimbell Royalty’s peers higher probable upside, analysts plainly believe Kimbell Royalty has less favorable growth aspects than its peers.

Dividends

Kimbell Royalty pays an annual dividend of $1.88 per share and has a dividend yield of 12.4%. Kimbell Royalty pays out 223.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.2% and pay out -131.6% of their earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kimbell Royalty	27.17%	14.95%	7.41%
Kimbell Royalty Competitors	-457.98%	19.26%	6.33%

Risk & Volatility

Kimbell Royalty has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Kimbell Royalty’s peers have a beta of -3.76, indicating that their average share price is 476% less volatile than the S&P 500.

Institutional & Insider Ownership

25.8% of Kimbell Royalty shares are owned by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 5.6% of Kimbell Royalty shares are owned by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Kimbell Royalty and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kimbell Royalty	$333.83 million	$90.95 million	18.05
Kimbell Royalty Competitors	$10.86 billion	$5.51 billion	-0.83

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

Summary

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

Kimbell Royalty Company Profile

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.