Analyzing Alvopetro Energy (OTCMKTS:ALVOF) & Kimbell Royalty Partners (NYSE:KRP)

Kimbell Royalty Partners (NYSE:KRP) and Alvopetro Energy (OTCMKTS:ALVOF) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kimbell Royalty Partners	20.45%	8.98%	5.11%
Alvopetro Energy	47.79%	42.00%	33.43%

Volatility and Risk

Kimbell Royalty Partners has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Alvopetro Energy has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Dividends

Kimbell Royalty Partners pays an annual dividend of $1.72 per share and has a dividend yield of 10.7%. Alvopetro Energy pays an annual dividend of $0.36 per share and has a dividend yield of 10.3%. Kimbell Royalty Partners pays out 187.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alvopetro Energy pays out 47.4% of its earnings in the form of a dividend.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimbell Royalty Partners	0	0	6	1	3.14
Alvopetro Energy	0	0	0	0	N/A

Kimbell Royalty Partners currently has a consensus target price of $21.00, suggesting a potential upside of 30.19%. Given Kimbell Royalty Partners’ higher possible upside, research analysts clearly believe Kimbell Royalty Partners is more favorable than Alvopetro Energy.

Institutional & Insider Ownership

25.8% of Kimbell Royalty Partners shares are held by institutional investors. 5.6% of Kimbell Royalty Partners shares are held by company 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.

Valuation & Earnings

This table compares Kimbell Royalty Partners and Alvopetro Energy’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimbell Royalty Partners	$294.07 million	5.19	$66.54 million	$0.92	17.53
Alvopetro Energy	$59.69 million	2.13	$28.52 million	$0.76	4.58

Kimbell Royalty Partners has higher revenue and earnings than Alvopetro Energy. Alvopetro Energy is trading at a lower price-to-earnings ratio than Kimbell Royalty Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Kimbell Royalty Partners beats Alvopetro Energy on 12 of the 16 factors compared between the two stocks.

About Kimbell Royalty Partners

Kimbell Royalty Partners, LP, together with its subsidiaries, engages in acquiring and owning mineral and royalty interests in oil and natural gas properties in the United States. It serves as the general partner of the company. The company was incorporated in 2015 and is based in Fort Worth, Texas.

About Alvopetro Energy

Alvopetro Energy Ltd. engages in the acquisition, exploration, development, and production of hydrocarbons. It holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. The company was incorporated in 2013 and is headquartered in Calgary, Canada.