Viper Energy (NASDAQ:VNOM – Get Free Report) and Kimbell Royalty Partners (NYSE:KRP – Get Free Report) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Analyst Recommendations
This is a summary of current ratings and price targets for Viper Energy and Kimbell Royalty Partners, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Viper Energy | 0 | 0 | 11 | 0 | 3.00 |
| Kimbell Royalty Partners | 1 | 0 | 3 | 1 | 2.80 |
Viper Energy currently has a consensus price target of $59.55, indicating a potential upside of 19.09%. Kimbell Royalty Partners has a consensus price target of $21.20, indicating a potential upside of 37.00%. Given Kimbell Royalty Partners’ higher possible upside, analysts clearly believe Kimbell Royalty Partners is more favorable than Viper Energy.
Risk & Volatility
Valuation and Earnings
This table compares Viper Energy and Kimbell Royalty Partners”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Viper Energy | $827.70 million | 12.87 | $200.09 million | $2.33 | 21.46 |
| Kimbell Royalty Partners | $294.07 million | 5.03 | $66.54 million | $0.51 | 30.34 |
Viper Energy has higher revenue and earnings than Kimbell Royalty Partners. Viper 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.
Profitability
This table compares Viper Energy and Kimbell Royalty Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Viper Energy | 24.65% | 6.72% | 4.98% |
| Kimbell Royalty Partners | 11.33% | 5.82% | 3.05% |
Dividends
Viper Energy pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. Kimbell Royalty Partners pays an annual dividend of $1.64 per share and has a dividend yield of 10.6%. Viper Energy pays out 51.5% of its earnings in the form of a dividend. Kimbell Royalty Partners pays out 321.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
87.7% of Viper Energy shares are held by institutional investors. Comparatively, 25.8% of Kimbell Royalty Partners shares are held by institutional investors. 0.3% of Viper Energy shares are held by insiders. Comparatively, 5.6% of Kimbell Royalty Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Viper Energy beats Kimbell Royalty Partners on 12 of the 17 factors compared between the two stocks.
About Viper Energy
Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.
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.
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