Contrasting Kimbell Royalty (NYSE:KRP) and MV Oil Trust (NYSE:MVO)

MV Oil Trust (NYSE:MVO) and Kimbell Royalty (NYSE:KRP) are both small-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Dividends

MV Oil Trust pays an annual dividend of $0.56 per share and has a dividend yield of 33.6%. Kimbell Royalty pays an annual dividend of $1.40 per share and has a dividend yield of 10.6%. MV Oil Trust pays out 53.8% of its earnings in the form of a dividend. Kimbell Royalty pays out -2,000.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

MV Oil Trust has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500. Comparatively, Kimbell Royalty has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Earnings and Valuation

This table compares MV Oil Trust and Kimbell Royalty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MV Oil Trust	$12.78 million	1.50	$17.65 million	$1.04	1.60
Kimbell Royalty	$309.31 million	4.62	$12.32 million	($0.07)	-189.29

MV Oil Trust has higher earnings, but lower revenue than Kimbell Royalty. Kimbell Royalty is trading at a lower price-to-earnings ratio than MV Oil Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for MV Oil Trust and Kimbell Royalty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MV Oil Trust	1	0	0	0	1.00
Kimbell Royalty	2	5	1	0	1.88

Kimbell Royalty has a consensus target price of $15.80, suggesting a potential upside of 19.25%. Given Kimbell Royalty’s stronger consensus rating and higher probable upside, analysts plainly believe Kimbell Royalty is more favorable than MV Oil Trust.

Profitability

This table compares MV Oil Trust and Kimbell Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MV Oil Trust	92.68%	N/A	372.84%
Kimbell Royalty	10.66%	12.51%	6.28%

Institutional and Insider Ownership

3.5% of MV Oil Trust shares are owned by institutional investors. Comparatively, 25.8% of Kimbell Royalty shares are owned by institutional investors. 5.6% of Kimbell Royalty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Kimbell Royalty beats MV Oil Trust on 10 of the 16 factors compared between the two stocks.

About MV Oil Trust

MV Oil Trust acquires and holds term net profits interests in the oil and natural gas properties of MV Partners, LLC. Its properties wells located in the Mid-Continent region in the states of Kansas and Colorado. MV Oil Trust was incorporated in 2006 and is based in Houston, Texas.

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.