Kimbell Royalty Partners (KRP) versus ENI (E) Critical Comparison

Kimbell Royalty Partners (NYSE: KRP) and ENI (NYSE:E) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Dividends

Kimbell Royalty Partners pays an annual dividend of $1.24 per share and has a dividend yield of 7.5%. ENI pays an annual dividend of $1.31 per share and has a dividend yield of 3.7%. ENI pays out 119.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Kimbell Royalty Partners and ENI’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 N/A N/A -$80,000.00 N/A N/A
ENI $62.74 billion 1.02 -$1.62 billion $1.10 32.01

Kimbell Royalty Partners has higher earnings, but lower revenue than ENI.

Profitability

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

Net Margins Return on Equity Return on Assets
Kimbell Royalty Partners 1.43% 0.18% 0.16%
ENI 2.50% 3.69% 1.54%

Institutional and Insider Ownership

21.8% of Kimbell Royalty Partners shares are owned by institutional investors. Comparatively, 1.6% of ENI shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Kimbell Royalty Partners and ENI, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimbell Royalty Partners 0 0 5 1 3.17
ENI 4 3 4 0 2.00

Kimbell Royalty Partners presently has a consensus target price of $21.33, suggesting a potential upside of 29.69%. ENI has a consensus target price of $16.00, suggesting a potential downside of 54.56%. Given Kimbell Royalty Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Kimbell Royalty Partners is more favorable than ENI.

Summary

Kimbell Royalty Partners beats ENI on 8 of the 12 factors compared between the two stocks.

Kimbell Royalty Partners Company Profile

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.

ENI Company Profile

Eni SpA (Eni) is an Italy-based company engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company’s segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives.

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