Head-To-Head Analysis: San Juan Basin Royalty Trust (SJT) versus Its Peers

San Juan Basin Royalty Trust (NYSE: SJT) is one of 226 public companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its peers? We will compare San Juan Basin Royalty Trust to similar businesses based on the strength of its institutional ownership, risk, profitability, earnings, valuation, dividends and analyst recommendations.

Earnings & Valuation

This table compares San Juan Basin Royalty Trust and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
San Juan Basin Royalty Trust $17.53 million $13.92 million 10.85
San Juan Basin Royalty Trust Competitors $1.86 billion -$438.87 million -11.55

San Juan Basin Royalty Trust’s peers have higher revenue, but lower earnings than San Juan Basin Royalty Trust. San Juan Basin Royalty Trust is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

San Juan Basin Royalty Trust pays an annual dividend of $0.88 per share and has a dividend yield of 10.3%. San Juan Basin Royalty Trust pays out 111.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.7% and pay out 135.9% of their earnings in the form of a dividend. San Juan Basin Royalty Trust has increased its dividend for 3 consecutive years. San Juan Basin Royalty Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

25.7% of San Juan Basin Royalty Trust shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 12.5% of shares of all “Oil & Gas Exploration and Production” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for San Juan Basin Royalty Trust and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
San Juan Basin Royalty Trust 0 0 0 0 N/A
San Juan Basin Royalty Trust Competitors 1504 7746 12538 265 2.52

As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 23.56%. Given San Juan Basin Royalty Trust’s peers higher possible upside, analysts clearly believe San Juan Basin Royalty Trust has less favorable growth aspects than its peers.

Risk and Volatility

San Juan Basin Royalty Trust has a beta of -0.37, indicating that its stock price is 137% less volatile than the S&P 500. Comparatively, San Juan Basin Royalty Trust’s peers have a beta of 1.40, indicating that their average stock price is 40% more volatile than the S&P 500.

Profitability

This table compares San Juan Basin Royalty Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
San Juan Basin Royalty Trust 94.95% 499.42% 284.57%
San Juan Basin Royalty Trust Competitors -297.07% 23.89% 5.65%

Summary

San Juan Basin Royalty Trust beats its peers on 7 of the 12 factors compared.

About San Juan Basin Royalty Trust

San Juan Basin Royalty Trust is an express trust. The principal asset of the Trust is Royalty. Its Royalty is carved from working, royalty and other oil and natural gas interests owned by Southland Royalty Company, the predecessor to Burlington Resources Oil & Gas Company LP (Burlington), in properties located in the San Juan Basin of northwestern New Mexico (Subject Interests). The Trustee of the Trust is Compass Bank. The function of the Trustee is to collect the net proceeds attributable to the Royalty, to pay all expenses and charges of the Trust and distribute the remaining available income to the Unit Holders. The Trust does not operate the Subject Interests and is not empowered to carry on any business activity. It is a widely held fixed investment trust (WHFIT) and is classified as a non-mortgage widely held fixed investment trust (NMWHFIT) for federal income tax purposes. As of December 31, 2016, 99% of the Trust’s estimated proved reserves consisted of natural gas reserves.

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