Pacific Coast Oil Trust (ROYT) & Marathon Oil (MRO) Head to Head Comparison

Marathon Oil (NYSE: MRO) and Pacific Coast Oil Trust (NYSE:ROYT) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Insider & Institutional Ownership

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81.2% of Marathon Oil shares are held by institutional investors. Comparatively, 16.3% of Pacific Coast Oil Trust shares are held by institutional investors. 0.4% of Marathon Oil shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Marathon Oil and Pacific Coast Oil Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marathon Oil 0 10 11 0 2.52
Pacific Coast Oil Trust 0 1 0 0 2.00

Marathon Oil currently has a consensus target price of $18.54, indicating a potential upside of 14.19%. Pacific Coast Oil Trust has a consensus target price of $1.50, indicating a potential downside of 27.18%. Given Marathon Oil’s stronger consensus rating and higher possible upside, analysts plainly believe Marathon Oil is more favorable than Pacific Coast Oil Trust.

Profitability

This table compares Marathon Oil and Pacific Coast Oil Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marathon Oil -120.11% -2.24% -1.16%
Pacific Coast Oil Trust 13.56% 1.98% 1.98%

Dividends

Marathon Oil pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Pacific Coast Oil Trust pays an annual dividend of $0.48 per share and has a dividend yield of 23.3%. Marathon Oil pays out -52.6% of its earnings in the form of a dividend. Pacific Coast Oil Trust pays out 4,800.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Marathon Oil has a beta of 2.3, suggesting that its stock price is 130% more volatile than the S&P 500. Comparatively, Pacific Coast Oil Trust has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500.

Valuation and Earnings

This table compares Marathon Oil and Pacific Coast Oil Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marathon Oil $4.77 billion 2.90 -$5.72 billion ($0.38) -42.74
Pacific Coast Oil Trust $7.49 million 10.61 $4.35 million $0.01 206.00

Pacific Coast Oil Trust has lower revenue, but higher earnings than Marathon Oil. Marathon Oil is trading at a lower price-to-earnings ratio than Pacific Coast Oil Trust, indicating that it is currently the more affordable of the two stocks.

Marathon Oil Company Profile

Marathon Oil Corporation is an exploration and production (E&P) company. The Company operates through three segments: North America E&P, International E&P and Oil Sands Mining. The North America E&P segment explores for, produces and markets crude oil and condensate, natural gas liquids (NGLs) and natural gas in North America. The International E&P segment explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of North America, and produces and markets products manufactured from natural gas, such as liquefied natural gas (LNG) and methanol, in Equatorial Guinea (E.G.). The Oil Sands Mining segment mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.

Pacific Coast Oil Trust Company Profile

Pacific Coast Oil Trust acquires and holds net profits and royalty interests in various oil and natural gas properties located in California. Its properties include Orcutt properties located in the Santa Maria Basin; and West Pico, East Coyote, and Sawtelle properties located in the Los Angeles Basin of California. As of December 31, 2016, the company had proved reserves of 13.3 million barrels of oil equivalent. Pacific Coast Oil Trust was founded in 2012 and is based in Austin, Texas.

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