BP Prudhoe Bay Royalty Trust (NYSE:BPT) and Royal Dutch Shell (NYSE:RDS.B) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Profitability
This table compares BP Prudhoe Bay Royalty Trust and Royal Dutch Shell's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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BP Prudhoe Bay Royalty Trust | N/A | 4,621.29% | 2,138.02% |
Royal Dutch Shell | -7.48% | 4.25% | 1.90% |
Valuation and Earnings
This table compares BP Prudhoe Bay Royalty Trust and Royal Dutch Shell's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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BP Prudhoe Bay Royalty Trust | $48.97 million | 1.98 | $47.92 million | N/A | N/A |
Royal Dutch Shell | $352.11 billion | 0.43 | $15.84 billion | N/A | N/A |
Royal Dutch Shell has higher revenue and earnings than BP Prudhoe Bay Royalty Trust.
Volatility and Risk
BP Prudhoe Bay Royalty Trust has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Royal Dutch Shell has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
Insider & Institutional Ownership
2.0% of BP Prudhoe Bay Royalty Trust shares are held by institutional investors. Comparatively, 3.1% of Royal Dutch Shell shares are held by institutional investors. 1.0% of Royal Dutch Shell shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations and price targets for BP Prudhoe Bay Royalty Trust and Royal Dutch Shell, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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BP Prudhoe Bay Royalty Trust | 0 | 0 | 0 | 0 | N/A |
Royal Dutch Shell | 0 | 1 | 4 | 0 | 2.80 |
Royal Dutch Shell has a consensus price target of $57.00, suggesting a potential upside of 46.04%. Given Royal Dutch Shell's higher probable upside, analysts clearly believe Royal Dutch Shell is more favorable than BP Prudhoe Bay Royalty Trust.
Summary
Royal Dutch Shell beats BP Prudhoe Bay Royalty Trust on 7 of the 12 factors compared between the two stocks.