Financial Contrast: North European Oil Royality Trust (NYSE:NRT) & Tourmaline Oil (OTCMKTS:TRMLF)

North European Oil Royality Trust (NYSE:NRT) and Tourmaline Oil (OTCMKTS:TRMLF) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

7.0% of North European Oil Royality Trust shares are owned by institutional investors. Comparatively, 1.8% of Tourmaline Oil shares are owned by institutional investors. 3.5% of North European Oil Royality Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares North European Oil Royality Trust and Tourmaline Oil”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
North European Oil Royality Trust	$8.65 million	7.55	$7.94 million	$1.02	6.97
Tourmaline Oil	$4.72 billion	3.73	$187.99 million	$1.53	29.70

Tourmaline Oil has higher revenue and earnings than North European Oil Royality Trust. North European Oil Royality Trust is trading at a lower price-to-earnings ratio than Tourmaline Oil, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

North European Oil Royality Trust has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Tourmaline Oil has a beta of -0.29, suggesting that its share price is 129% less volatile than the S&P 500.

Dividends

North European Oil Royality Trust pays an annual dividend of $1.04 per share and has a dividend yield of 14.6%. Tourmaline Oil pays an annual dividend of $1.44 per share and has a dividend yield of 3.2%. North European Oil Royality Trust pays out 102.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tourmaline Oil pays out 94.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares North European Oil Royality Trust and Tourmaline Oil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
North European Oil Royality Trust	91.06%	491.20%	222.05%
Tourmaline Oil	12.12%	11.95%	8.26%

Analyst Recommendations

This is a breakdown of recent ratings for North European Oil Royality Trust and Tourmaline Oil, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
North European Oil Royality Trust	0	0	1	0	3.00
Tourmaline Oil	1	5	3	0	2.22

Tourmaline Oil has a consensus price target of $65.00, suggesting a potential upside of 43.05%. Given Tourmaline Oil’s higher probable upside, analysts plainly believe Tourmaline Oil is more favorable than North European Oil Royality Trust.

Summary

North European Oil Royality Trust beats Tourmaline Oil on 9 of the 16 factors compared between the two stocks.

About North European Oil Royality Trust

North European Oil Royalty Trust is a grantor trust that holds overriding royalty interests in certain oil, natural gas and sulfur concessions in the Federal Republic of Germany. The Trust does not explore for or produce hydrocarbons itself; instead, it receives royalty payments based on production from the properties in which it holds interests. The Trust’s royalty interests are primarily associated with gas-producing concessions in the Oldenburg and Ostfriesland regions of northwestern Germany.

About Tourmaline Oil

Tourmaline Oil Corp. is a Canadian energy company focused on the exploration, development and production of natural gas, natural gas liquids and crude oil. The company’s operations are concentrated in Western Canada, including resource areas in Alberta and British Columbia. Founded in 2008, Tourmaline has grown through development of its natural gas and liquids-rich assets and through acquisitions. Its activities span the energy-production process, from identifying and developing reserves to producing and marketing hydrocarbons.