Rosehill Resources (NASDAQ: ROSE) and SandRidge Permian Trust (NYSE:PER) are both small-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.
Institutional & Insider Ownership
5.9% of Rosehill Resources shares are owned by institutional investors. Comparatively, 6.2% of SandRidge Permian Trust shares are owned by institutional investors. 29.0% of SandRidge Permian Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Rosehill Resources and SandRidge Permian Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SandRidge Permian Trust||88.09%||19.59%||19.59%|
SandRidge Permian Trust pays an annual dividend of $0.45 per share and has a dividend yield of 22.0%. Rosehill Resources does not pay a dividend. SandRidge Permian Trust pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent recommendations and price targets for Rosehill Resources and SandRidge Permian Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SandRidge Permian Trust||0||0||0||0||N/A|
Rosehill Resources currently has a consensus target price of $11.83, indicating a potential upside of 86.06%. Given Rosehill Resources’ higher probable upside, equities analysts clearly believe Rosehill Resources is more favorable than SandRidge Permian Trust.
Earnings and Valuation
This table compares Rosehill Resources and SandRidge Permian Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rosehill Resources||N/A||N/A||-$1.43 million||($0.96)||-6.63|
|SandRidge Permian Trust||$29.87 million||3.59||$25.64 million||$0.50||4.09|
SandRidge Permian Trust has higher revenue and earnings than Rosehill Resources. Rosehill Resources is trading at a lower price-to-earnings ratio than SandRidge Permian Trust, indicating that it is currently the more affordable of the two stocks.
SandRidge Permian Trust beats Rosehill Resources on 10 of the 13 factors compared between the two stocks.
About Rosehill Resources
Rosehill Resources Inc., formerly KLR Energy Acquisition Corp., is an oil and gas exploration company. The Company is focused on the Delaware Basin portion of the Permian Basin. It has nearly 5,000 net acres with approximately 80% held by production and drilling locations. Its drilling locations are located across ten distinct benches.
About SandRidge Permian Trust
Sandridge Permian Trust (the Trust) is a statutory trust. The Trust holds Royalty Interests in specified oil and natural gas properties in the Permian Basin located in Andrews County, Texas. The Trust’s business activities are generally limited to owning the Royalty Interests, and entering into hedging arrangements at the inception of the Trust and activities related thereto, including activities required or permitted by the terms of the conveyances related to the Royalty Interests. The Trust’s properties consist of Royalty Interests in the initial wells and over 860 additional wells that are drilled and perforated for completion. The Royalty Interests are in properties located in the greater Fuhrman-Mascho field, a field in Andrews County, Texas that produces oil primarily from the Grayburg/San Andres formation in the Permian Basin. The Permian Basin extends throughout southwestern Texas and southeastern New Mexico over an area approximately 250 miles wide and over 300 miles long.
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