Head to Head Analysis: Mesa Royalty Trust (MTR) versus Its Peers

Institutional and Insider Ownership

12.7% of Mesa Royalty Trust shares are held by institutional investors. Comparatively, 15.4% of shares of all “OIL – US RYLTY TR” companies are held by institutional investors. 6.0% of shares of all “OIL – US RYLTY TR” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Mesa Royalty Trust has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Mesa Royalty Trust’s competitors have a beta of 0.27, meaning that their average share price is 73% less volatile than the S&P 500.

Dividends

Mesa Royalty Trust pays an annual dividend of $0.38 per share and has a dividend yield of 6.4%. Mesa Royalty Trust pays out 80.9% 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 – US RYLTY TR” companies pay a dividend yield of 9.0% and pay out 122.6% of their earnings in the form of a dividend. Mesa Royalty Trust has increased its dividend for 1 consecutive years.

Valuation & Earnings

This table compares Mesa Royalty Trust and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mesa Royalty Trust	$630,000.00	$460,000.00	12.67
Mesa Royalty Trust Competitors	$46.39 million	$16.76 million	52.31

Mesa Royalty Trust’s competitors have higher revenue and earnings than Mesa Royalty Trust. Mesa Royalty Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Mesa Royalty Trust and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mesa Royalty Trust	73.13%	13.48%	13.12%
Mesa Royalty Trust Competitors	62.32%	1,308.87%	182.55%

Summary

Mesa Royalty Trust competitors beat Mesa Royalty Trust on 8 of the 11 factors compared.

Mesa Royalty Trust Company Profile

Mesa Royalty Trust owns overriding royalty interests in various oil and gas producing properties in the United States. It holds interests in properties located in the Hugoton field of Kansas; and the San Juan Basin field of Northwestern New Mexico and Southwestern Colorado. The company was founded in 1979 and is based in Houston, Texas.