Marine Petroleum Trust (NASDAQ:MARPS) and Mesa Royalty Trust (NYSE:MTR) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Risk & Volatility
Marine Petroleum Trust has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500. Comparatively, Mesa Royalty Trust has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
This table compares Marine Petroleum Trust and Mesa Royalty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marine Petroleum Trust||75.50%||70.31%||70.31%|
|Mesa Royalty Trust||94.00%||84.52%||69.55%|
Earnings & Valuation
This table compares Marine Petroleum Trust and Mesa Royalty Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Marine Petroleum Trust||$870,000.00||7.01||$660,000.00||N/A||N/A|
|Mesa Royalty Trust||$3.02 million||8.15||$2.93 million||N/A||N/A|
Mesa Royalty Trust has higher revenue and earnings than Marine Petroleum Trust.
This is a breakdown of recent ratings and target prices for Marine Petroleum Trust and Mesa Royalty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marine Petroleum Trust||0||0||0||0||N/A|
|Mesa Royalty Trust||0||0||0||0||N/A|
Insider & Institutional Ownership
1.8% of Marine Petroleum Trust shares are held by institutional investors. Comparatively, 14.8% of Mesa Royalty Trust shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Marine Petroleum Trust pays an annual dividend of $1.08 per share and has a dividend yield of 35.4%. Mesa Royalty Trust pays an annual dividend of $1.26 per share and has a dividend yield of 9.5%. Mesa Royalty Trust has raised its dividend for 4 consecutive years.
Mesa Royalty Trust beats Marine Petroleum Trust on 8 of the 11 factors compared between the two stocks.
About Marine Petroleum Trust
Marine Petroleum Trust (the Trust) is a royalty trust. The Trust is engaged in the administration and liquidation of rights to payments from certain oil and natural gas leases in the Gulf of Mexico, under license agreements and amendments between the Trust’s predecessors and Chevron Corporation (Chevron) and its assignees. The Trust distributes all income, after paying its liabilities and obligations, to the unit holders during the months of March, June, September and December each year. The Trust’s subsidiary, Marine Petroleum Corporation (MPC), holds title to interests in properties subject to the Trust’s interests that are situated offshore of Louisiana. MPC is engaged in the administration and collection of royalties. As of June 30, 2016, MPC held an overriding royalty interest equal to 0.75% of the value at the well of any oil, natural gas, or other minerals produced and sold from the leases. All aspects of MPC’s operations are conducted by third parties.
About Mesa Royalty Trust
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.
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