Contrasting Mesa Royalty Trust (MTR) and Its Rivals

Dividends

Mesa Royalty Trust pays an annual dividend of $0.38 per share and has a dividend yield of 7.1%. 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 9.2% and pay out 133.4% of their earnings in the form of a dividend. Mesa Royalty Trust has raised its dividend for 1 consecutive years.

Volatility and Risk

Mesa Royalty Trust has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Mesa Royalty Trust’s competitors have a beta of 0.33, indicating that their average stock price is 67% less volatile than the S&P 500.

Institutional and Insider Ownership

12.7% of Mesa Royalty Trust shares are owned by institutional investors. Comparatively, 30.4% of shares of all “OIL – US RYLTY TR” companies are owned by institutional investors. 5.0% of shares of all “OIL – US RYLTY TR” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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	57.68%	1,199.90%	167.41%

Earnings and Valuation

This table compares Mesa Royalty Trust and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mesa Royalty Trust	$630,000.00	$460,000.00	11.40
Mesa Royalty Trust Competitors	$82.64 million	$18.27 million	26.84

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.

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.