Reviewing Mesa Royalty Trust (MTR) and Sabine Royalty Trust (SBR)

Mesa Royalty Trust (NYSE:MTR) and Sabine Royalty Trust (NYSE:SBR) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Mesa Royalty Trust 94.00% 84.52% 69.55%
Sabine Royalty Trust 93.84% 841.92% 622.65%

Risk and Volatility

Mesa Royalty Trust has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Sabine Royalty Trust has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Insider and Institutional Ownership

14.8% of Mesa Royalty Trust shares are owned by institutional investors. Comparatively, 9.7% of Sabine Royalty Trust shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Mesa Royalty Trust pays an annual dividend of $1.26 per share and has a dividend yield of 9.5%. Sabine Royalty Trust pays an annual dividend of $3.29 per share and has a dividend yield of 9.0%. Mesa Royalty Trust has increased its dividend for 4 consecutive years. Mesa Royalty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Mesa Royalty Trust and Sabine Royalty Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mesa Royalty Trust $3.02 million 8.15 $2.93 million N/A N/A
Sabine Royalty Trust $37.20 million 14.31 $34.72 million N/A N/A

Sabine Royalty Trust has higher revenue and earnings than Mesa Royalty Trust.

Analyst Recommendations

This is a summary of current recommendations and price targets for Mesa Royalty Trust and Sabine Royalty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mesa Royalty Trust 0 0 0 0 N/A
Sabine Royalty Trust 0 0 0 0 N/A

Summary

Sabine Royalty Trust beats Mesa Royalty Trust on 6 of the 11 factors compared between the two stocks.

Mesa Royalty Trust Company Profile

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

Sabine Royalty Trust Company Profile

Sabine Royalty Trust holds royalty and mineral interests in various oil and gas properties in the United States. Its royalty and mineral interests include landowner's royalties, overriding royalty interests, minerals, production payments, and other similar non-participatory interest in certain producing and proved undeveloped oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. The company was founded in 1982 and is based in Dallas, Texas.

Receive News & Ratings for Mesa Royalty Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mesa Royalty Trust and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply