Lekoil (OTCMKTS:LEKOF) 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, analyst recommendations, institutional ownership, valuation, risk and profitability.
Insider & Institutional Ownership
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25.0% of Kimbell Royalty Partners shares are held by institutional investors. 14.2% of Kimbell Royalty Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Lekoil and Kimbell Royalty Partners’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lekoil | $48.03 million | 0.10 | -$11.58 million | N/A | N/A |
| Kimbell Royalty Partners | $90.48 million | 8.16 | -$159.45 million | $0.91 | 13.41 |
Lekoil has higher earnings, but lower revenue than Kimbell Royalty Partners.
Volatility and Risk
Lekoil has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Kimbell Royalty Partners has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Lekoil and Kimbell Royalty Partners, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lekoil | 0 | 0 | 0 | 0 | N/A |
| Kimbell Royalty Partners | 0 | 1 | 3 | 1 | 3.00 |
Kimbell Royalty Partners has a consensus price target of $13.02, indicating a potential upside of 6.72%. Given Kimbell Royalty Partners’ higher possible upside, analysts clearly believe Kimbell Royalty Partners is more favorable than Lekoil.
Profitability
This table compares Lekoil and Kimbell Royalty Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lekoil | N/A | N/A | N/A |
| Kimbell Royalty Partners | -86.40% | 3.75% | 2.25% |
Summary
Kimbell Royalty Partners beats Lekoil on 10 of the 12 factors compared between the two stocks.
Lekoil Company Profile
Lekoil Limited explores for, develops, and produces crude oil and natural gas primarily in Nigeria. The company owns 40% interest in the Otakikpo marginal field located in the south-eastern part of the Niger Delta; 45% participating interest in the OPL 276 located in the eastern Niger Delta basin; 62% participating interest in the OPL 325; and 17.14% participating interest in the OPL 310 block situated in the Upper Cretaceous fairway that runs along the West African Transform Margin. The company has a strategic alliance agreement with NAMCOR Exploration and Production (PTY) Limited. Lekoil Limited was founded in 2010 and is headquartered in Lagos, Nigeria.
Kimbell Royalty Partners Company Profile
Kimbell Royalty Partners LP engages in owning and acquiring mineral and royalty interests in oil and natural gas properties. The company was founded on October 30, 2015 and is headquartered in Fort Worth, TX.
