Head-To-Head Comparison: Rosehill Resources (NASDAQ:ROSE) vs. Kimbell Royalty Partners (NASDAQ:KRP)

Rosehill Resources (NASDAQ:ROSE) and Kimbell Royalty Partners (NYSE:KRP) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Institutional and Insider Ownership

11.7% of Rosehill Resources shares are owned by institutional investors. Comparatively, 24.0% of Kimbell Royalty Partners shares are owned by institutional investors. 80.3% of Rosehill Resources shares are owned by company insiders. Comparatively, 14.2% of Kimbell Royalty Partners 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.

Risk and Volatility

Rosehill Resources has a beta of 3.34, meaning that its stock price is 234% more volatile than the S&P 500. Comparatively, Kimbell Royalty Partners has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Rosehill Resources and Kimbell Royalty Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rosehill Resources 0 4 0 0 2.00
Kimbell Royalty Partners 0 1 8 1 3.00

Rosehill Resources currently has a consensus target price of $6.00, indicating a potential upside of 1,718.18%. Kimbell Royalty Partners has a consensus target price of $19.00, indicating a potential upside of 255.14%. Given Rosehill Resources’ higher probable upside, equities analysts clearly believe Rosehill Resources is more favorable than Kimbell Royalty Partners.

Valuation and Earnings

This table compares Rosehill Resources and Kimbell Royalty Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rosehill Resources $301.88 million 0.05 $58.04 million $0.21 1.57
Kimbell Royalty Partners $108.22 million 2.67 -$69.06 million $3.37 1.59

Rosehill Resources has higher revenue and earnings than Kimbell Royalty Partners. Rosehill Resources is trading at a lower price-to-earnings ratio than Kimbell Royalty Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rosehill Resources and Kimbell Royalty Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rosehill Resources 25.28% 25.60% 4.13%
Kimbell Royalty Partners -73.49% 11.26% 8.95%

Summary

Rosehill Resources beats Kimbell Royalty Partners on 8 of the 15 factors compared between the two stocks.

Rosehill Resources Company Profile

Rosehill Resources Inc., an independent oil and natural gas company, focuses on the acquisition, exploration, development, and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin. As of December 31, 2018, its portfolio included 67 gross operated producing horizontal wells in the Northern Delaware Basin and 4 gross operated producing horizontal wells in the Southern Delaware Basin; and working interests in approximately 6,665 gross acres in the Northern Delaware Basin and 9,219 gross acres in the Southern Delaware Basin, as well as 513 gross operated and 53 non-operated potential horizontal drilling locations in the Northern and Southern Delaware Basin. The company was founded in 2015 and is headquartered in Houston, Texas. Rosehill Resources Inc. is a subsidiary of Tema Oil & Gas Company.

Kimbell Royalty Partners Company Profile

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.

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