Petrobras Argentina (NYSE: PZE) and Kimbell Royalty (NYSE:KRP) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitabiliy.
Analyst Ratings
This is a breakdown of recent ratings for Petrobras Argentina and Kimbell Royalty, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Petrobras Argentina | 0 | 0 | 0 | 0 | N/A |
| Kimbell Royalty | 0 | 0 | 4 | 1 | 3.20 |
Kimbell Royalty has a consensus price target of $22.75, suggesting a potential upside of 42.72%. Given Kimbell Royalty’s higher possible upside, analysts clearly believe Kimbell Royalty is more favorable than Petrobras Argentina.
Dividends
Kimbell Royalty pays an annual dividend of $0.92 per share and has a dividend yield of 5.8%. Petrobras Argentina does not pay a dividend.
Earnings & Valuation
This table compares Petrobras Argentina and Kimbell Royalty’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Petrobras Argentina | $1.64 billion | 1.35 | $340.18 million | N/A | N/A |
| Kimbell Royalty | $7.72 million | 33.72 | $3.11 million | N/A | N/A |
Petrobras Argentina has higher revenue and earnings than Kimbell Royalty.
Profitability
This table compares Petrobras Argentina and Kimbell Royalty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Petrobras Argentina | N/A | N/A | N/A |
| Kimbell Royalty | N/A | N/A | N/A |
Institutional and Insider Ownership
3.2% of Petrobras Argentina shares are owned by institutional investors. Comparatively, 20.4% of Kimbell Royalty shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Kimbell Royalty beats Petrobras Argentina on 6 of the 8 factors compared between the two stocks.
About Petrobras Argentina
Petrobras Argentina SA, formerly Petrobras Energia SA, is an Argentina-based company primarily engaged in the petroleum refining sector. The Company’s activities are structured in four business segments: Oil and Gas Exploration and Production, including the acquisition, exploration, exploitation and maintenance of oil and gas reserves; Refining and Distribution, processing and marketing of petroleum products; Petrochemicals, comprising the production of styrene, polystyrene, bi-oriented polystyrene (BOPS) and synthetic rubber; as well as Gas and Energy, providing gas distribution, as well as fossil fuel and hydroelectric power energy generation. Its petroleum products include lubricants, diesel fuel, compressed natural gas (CNG) and asphalts, among others. The Company has operations established in Argentina, Bolivia, Ecuador, Venezuela, Mexico and Spain, among others. The Company is owned by Petrobras Participaciones SL. It operates throught Albares Renovables Argentina SA.
About Kimbell Royalty
Kimbell Royalty Partners, LP owns and acquires mineral and royalty interests in oil and natural gas properties throughout the United States. As of December 31, 2015, the Company owned mineral and royalty interests in approximately 3.7 million gross acres and overriding royalty interests in approximately 0.9 million gross acres, with approximately 44% of its acres located in the Permian Basin. As of December 31, 2015, the Company’s mineral and royalty interests were located in 20 states and in every onshore basin across the continental United States, and included ownership in over 48,000 gross producing wells, including over 29,000 wells in the Permian Basin. The Company’s properties include Permian Basin, Mid-Continent, Terryville/Cotton Valley/Haynesville, Eagle Ford, Barnett Shale/Fort Worth Basin, Bakken/Williston Basin, San Juan Basin, Onshore California, DJ Basin/Rockies/Niobrara, Illinois Basin and others.
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