Kimbell Royalty Partners (NYSE:KRP) and GALP ENERGIA SG/ADR (OTCMKTS:GLPEY) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Profitability

This table compares Kimbell Royalty Partners and GALP ENERGIA SG/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimbell Royalty Partners -9.87% 1.02% 0.79%
GALP ENERGIA SG/ADR 5.61% 17.15% 8.11%

Insider and Institutional Ownership

64.4% of Kimbell Royalty Partners shares are owned by institutional investors. 14.2% of Kimbell Royalty Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Kimbell Royalty Partners and GALP ENERGIA SG/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimbell Royalty Partners 0 1 5 0 2.83
GALP ENERGIA SG/ADR 1 3 0 0 1.75

Kimbell Royalty Partners currently has a consensus target price of $20.83, suggesting a potential upside of 30.62%. Given Kimbell Royalty Partners’ stronger consensus rating and higher possible upside, equities analysts clearly believe Kimbell Royalty Partners is more favorable than GALP ENERGIA SG/ADR.

Dividends

Kimbell Royalty Partners pays an annual dividend of $1.48 per share and has a dividend yield of 9.3%. GALP ENERGIA SG/ADR pays an annual dividend of $0.26 per share and has a dividend yield of 3.5%. Kimbell Royalty Partners pays out -740.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Kimbell Royalty Partners and GALP ENERGIA SG/ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kimbell Royalty Partners $70.26 million 5.24 -$50.43 million ($0.20) -79.75
GALP ENERGIA SG/ADR $16.48 billion N/A $692.87 million N/A N/A

GALP ENERGIA SG/ADR has higher revenue and earnings than Kimbell Royalty Partners.

Volatility and Risk

Kimbell Royalty Partners has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, GALP ENERGIA SG/ADR has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Summary

Kimbell Royalty Partners beats GALP ENERGIA SG/ADR on 8 of the 13 factors compared between the two stocks.

About Kimbell Royalty Partners

Kimbell Royalty Partners, LP owns and acquires mineral and royalty interests in oil and natural gas properties in the United States. As of December 31, 2018, the company owned mineral and royalty interests in approximately 7.8 million gross acres and overriding royalty interests in approximately 4.4 million gross acres. Its mineral and royalty interests are located in 28 states and include ownership in approximately 86,000 gross producing wells, including approximately 38,000 wells in the Permian Basin. Kimbell Royalty GP, LLC serves as the general partner of the company. Kimbell Royalty Partners, LP was founded in 2013 and is based in Fort Worth, Texas.

About GALP ENERGIA SG/ADR

Galp Energia, SGPS, S.A. operates as oil and natural gas integrated operator worldwide. It explores, develops, and produces hydrocarbons in approximately 50 projects with proved, probable, and possible reserves of 755 million barrels of oil equivalent. The company also engages in the refining, retail, and wholesale marketing of oil products; operation of oil products storage and transportation infrastructure; and operation of 1,459 service stations in Portugal, Spain, and Africa. In addition, it produces biodiesel and biofuel; and operates 41,400 hectares of palm oil plantation. Further, the company sources, distributes, and supplies natural gas; produces and markets electricity with an installed capacity of 173 MW of thermal plants and 12 MW of wind power. Additionally, it offers business management and consultancy services. The company was formerly known as Galp – Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was founded in 1999 and is headquartered in Lisbon, Portugal.

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