Financial Analysis: Enduro Royalty Trust (NDRO) versus Harvest Natural Resources (NYSE:HNR)
Enduro Royalty Trust (NYSE: NDRO) and Harvest Natural Resources (NYSE:HNR) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitabiliy, analyst recommendations, risk, dividends and earnings.
Enduro Royalty Trust pays an annual dividend of $0.13 per share and has a dividend yield of 3.9%. Harvest Natural Resources does not pay a dividend. Enduro Royalty Trust pays out 52.0% of its earnings in the form of a dividend.
This is a summary of current ratings for Enduro Royalty Trust and Harvest Natural Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enduro Royalty Trust||0||0||1||0||3.00|
|Harvest Natural Resources||0||0||0||0||N/A|
Enduro Royalty Trust presently has a consensus price target of $3.75, indicating a potential upside of 11.94%. Given Enduro Royalty Trust’s higher possible upside, equities research analysts plainly believe Enduro Royalty Trust is more favorable than Harvest Natural Resources.
This table compares Enduro Royalty Trust and Harvest Natural Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enduro Royalty Trust||31.66%||10.08%||10.08%|
|Harvest Natural Resources||N/A||-25.98%||-17.70%|
Valuation and Earnings
This table compares Enduro Royalty Trust and Harvest Natural Resources’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Enduro Royalty Trust||$11.26 million||9.82||$8.25 million||$0.25||13.40|
|Harvest Natural Resources||N/A||N/A||N/A||($8.31)||-0.80|
Enduro Royalty Trust has higher revenue and earnings than Harvest Natural Resources. Harvest Natural Resources is trading at a lower price-to-earnings ratio than Enduro Royalty Trust, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Enduro Royalty Trust has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Harvest Natural Resources has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.
Institutional and Insider Ownership
57.5% of Enduro Royalty Trust shares are held by institutional investors. Comparatively, 53.9% of Harvest Natural Resources shares are held by institutional investors. 27.2% of Harvest Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Enduro Royalty Trust beats Harvest Natural Resources on 10 of the 12 factors compared between the two stocks.
Enduro Royalty Trust Company Profile
Enduro Royalty Trust (the Trust) is a statutory trust formed by Enduro Resource Partners LLC (Enduro), as trustor, The Bank of New York Mellon Trust Company, N.A. (the Trustee), as trustee, and Wilmington Trust Company (the Delaware Trustee), as Delaware Trustee. The Trust was created to acquire and hold for the benefit of the Trust unitholders a net profits interest representing the right to receive approximately 80% of the net profits from the sale of oil and natural gas production from certain properties in the states of Texas, Louisiana and New Mexico held by Enduro as of the date of the conveyance of the net profits interest to the Trust (the Net Profits Interest). The properties in which the Trust holds the Net Profits Interest are referred to as the Underlying Properties. Enduro is engaged in the production and development of oil and natural gas. The Underlying Properties comprises producing and non-producing interests in oil and natural gas units, wells and lands.
Harvest Natural Resources Company Profile
Harvest Natural Resources, Inc. (Harvest) is in the process of dissolution and winding up. The Company was previously a petroleum exploration and production company. The Company was engaged in acquiring exploration, development and producing properties in geological basins active hydrocarbon systems.
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