Analyzing Kimbell Royalty Partners (NYSE:KRP) & Halcon Resources (OTCMKTS:HKRSQ)

Kimbell Royalty Partners (NYSE:KRP) and Halcon Resources (OTCMKTS:HKRSQ) 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 analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Institutional and Insider Ownership

36.7% of Kimbell Royalty Partners shares are held by institutional investors. 5.6% of Kimbell Royalty Partners shares are held by company insiders. Comparatively, 6.1% of Halcon Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Kimbell Royalty Partners and Halcon Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimbell Royalty Partners	29.89%	12.40%	7.09%
Halcon Resources	-324.96%	-238.22%	-73.12%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Kimbell Royalty Partners and Halcon Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimbell Royalty Partners	0	0	3	1	3.25
Halcon Resources	0	0	0	0	N/A

Kimbell Royalty Partners presently has a consensus price target of $20.75, suggesting a potential upside of 32.42%. Given Kimbell Royalty Partners’ higher possible upside, equities research analysts plainly believe Kimbell Royalty Partners is more favorable than Halcon Resources.

Valuation and Earnings

This table compares Kimbell Royalty Partners and Halcon Resources’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimbell Royalty Partners	$254.11 million	5.83	$111.97 million	$1.26	12.41
Halcon Resources	$224.68 million	0.05	-$1.17 billion	N/A	N/A

Kimbell Royalty Partners has higher revenue and earnings than Halcon Resources.

Summary

Kimbell Royalty Partners beats Halcon Resources on 10 of the 11 factors compared between the two stocks.

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. The company serves as the general partner of the company. Kimbell Royalty Partners, LP was incorporated in 2015 and is based in Fort Worth, Texas.

About Halcon Resources

Halcón Resources Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. As of December 31, 2018, the company held interests in 56,900 net acres in the Delaware Basin, located in Pecos, Reeves, Ward, and Winkler Counties, Texas. As of December 31, 2018, it had estimated proved reserves of approximately 85.2 million barrels of oil equivalent comprising 50.7 million barrels of crude oil, 17.1 million barrels of natural gas liquids, and 104.7 billion cubic feet of natural gas. The company was formerly known as RAM Energy Resources, Inc. and changed its name to Halcón Resources Corporation in February 2012. Halcón Resources Corporation was founded in 1987 and is headquartered in Houston, Texas. On August 7, 2019, Halcón Resources Corporation along with its affiliates filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for Southern District of Texas.