Financial Analysis: North European Oil Royalty Trust (NRT) & Cross Timbers Royalty Trust (CRT)

North European Oil Royalty Trust (NYSE:NRT) and Cross Timbers Royalty Trust (NYSE:CRT) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Insider and Institutional Ownership

12.8% of North European Oil Royalty Trust shares are owned by institutional investors. Comparatively, 10.5% of Cross Timbers Royalty Trust shares are owned by institutional investors. 0.5% of North European Oil Royalty Trust shares are owned by company insiders. Comparatively, 9.4% of Cross Timbers Royalty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

North European Oil Royalty Trust pays an annual dividend of $0.76 per share and has a dividend yield of 10.9%. Cross Timbers Royalty Trust pays an annual dividend of $1.49 per share and has a dividend yield of 10.1%.

Profitability

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

Net Margins Return on Equity Return on Assets
North European Oil Royalty Trust 90.16% 7,669.19% 381.91%
Cross Timbers Royalty Trust 76.24% 92.44% 78.37%

Valuation and Earnings

This table compares North European Oil Royalty Trust and Cross Timbers Royalty Trust’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 Royalty Trust $7.76 million 8.23 $7.02 million N/A N/A
Cross Timbers Royalty Trust $6.63 million 13.36 $7.39 million N/A N/A

Cross Timbers Royalty Trust has lower revenue, but higher earnings than North European Oil Royalty Trust.

Volatility & Risk

North European Oil Royalty Trust has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Cross Timbers Royalty Trust has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for North European Oil Royalty Trust and Cross Timbers Royalty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
North European Oil Royalty Trust 0 0 0 0 N/A
Cross Timbers Royalty Trust 0 0 0 0 N/A

Summary

North European Oil Royalty Trust beats Cross Timbers Royalty Trust on 6 of the 11 factors compared between the two stocks.

North European Oil Royalty Trust Company Profile

North European Oil Royalty Trust, a grantor trust, holds overriding royalty rights covering gas and oil production in concessions or leases in the Federal Republic of Germany. It holds rights under contracts with German exploration and development subsidiaries of ExxonMobil Corp. and the Royal Dutch/Shell Group of Companies. The company holds royalties for the sale of well gas, oil well gas, crude oil, condensate, and sulfur. North European Oil Royalty Trust was founded in 1975 and is based in Red Bank, New Jersey.

Cross Timbers Royalty Trust Company Profile

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 interests in certain working interest properties in Texas and Oklahoma. The company was founded in 1991 and is based in Fort Worth, Texas.

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