Contrasting Cross Timbers Royalty Trust (NYSE:CRT) and North European Oil Royality Trust (NYSE:NRT)

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

Institutional & Insider Ownership

9.7% of Cross Timbers Royalty Trust shares are owned by institutional investors. Comparatively, 7.0% of North European Oil Royality Trust shares are owned by institutional investors. 9.4% of Cross Timbers Royalty Trust shares are owned by insiders. Comparatively, 3.5% of North European Oil Royality Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Cross Timbers Royalty Trust has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, North European Oil Royality Trust has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cross Timbers Royalty Trust	74.04%	147.68%	81.96%
North European Oil Royality Trust	91.06%	491.20%	222.05%

Valuation & Earnings

This table compares Cross Timbers Royalty Trust and North European Oil Royality Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cross Timbers Royalty Trust	$4.25 million	18.74	$6.15 million	$0.53	25.07
North European Oil Royality Trust	$8.65 million	7.76	$7.94 million	$1.02	7.16

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cross Timbers Royalty Trust	0	1	0	0	2.00
North European Oil Royality Trust	0	0	1	0	3.00

Dividends

Cross Timbers Royalty Trust pays an annual dividend of $3.33 per share and has a dividend yield of 25.1%. North European Oil Royality Trust pays an annual dividend of $1.04 per share and has a dividend yield of 14.2%. Cross Timbers Royalty Trust pays out 628.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Summary

North European Oil Royality Trust beats Cross Timbers Royalty Trust on 10 of the 15 factors compared between the two stocks.

About Cross Timbers Royalty Trust

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 working interest in four properties in Texas and three properties in Oklahoma. The company was founded in 1991 and is based in Dallas, Texas.

About North European Oil Royality Trust

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