Critical Contrast: Kimbell Royalty Partners (NYSE:KRP) and FEC Resources (OTCMKTS:FECOF)

Kimbell Royalty Partners (NYSE:KRP) and FEC Resources (OTCMKTS:FECOF) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kimbell Royalty Partners	11.33%	5.82%	3.05%
FEC Resources	N/A	131.17%	114.19%

Volatility and Risk

Kimbell Royalty Partners has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, FEC Resources has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Kimbell Royalty Partners and FEC Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimbell Royalty Partners	1	0	3	1	2.80
FEC Resources	0	0	0	0	0.00

Kimbell Royalty Partners currently has a consensus price target of $21.20, suggesting a potential upside of 32.87%. Given Kimbell Royalty Partners’ stronger consensus rating and higher probable upside, equities analysts clearly believe Kimbell Royalty Partners is more favorable than FEC Resources.

Institutional & Insider Ownership

25.8% of Kimbell Royalty Partners shares are held by institutional investors. Comparatively, 0.0% of FEC Resources shares are held by institutional investors. 5.6% of Kimbell Royalty Partners shares are held by company insiders. 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.

Earnings and Valuation

This table compares Kimbell Royalty Partners and FEC Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimbell Royalty Partners	$294.07 million	5.18	$66.54 million	$0.51	31.28
FEC Resources	N/A	N/A	-$190,000.00	N/A	N/A

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

Summary

Kimbell Royalty Partners beats FEC Resources on 10 of the 12 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. It serves as the general partner of the company. The company was incorporated in 2015 and is based in Fort Worth, Texas.

About FEC Resources

FEC Resources Inc. engages in the exploration and development of oil and gas properties in the Philippines. The company, through its 6.8% interest in Forum Energy Limited, primarily owns a 70% interest in the GSEC101 offshore license covering an area of approximately 10,360 square kilometers located to the northwest of the Philippine Island of Palawan. FEC Resources Inc. is headquartered in Vancouver, Canada. FEC Resources Inc. operates as a subsidiary of PXP Energy Corporation.