Contrasting Enduro Royalty Trust (NYSE:NDRO) & Clayton Williams Energy (CWEI)
Enduro Royalty Trust (NYSE: NDRO) and Clayton Williams Energy (NYSE:CWEI) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitabiliy, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
This is a summary of recent recommendations and price targets for Enduro Royalty Trust and Clayton Williams Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enduro Royalty Trust||0||0||1||0||3.00|
|Clayton Williams Energy||0||4||0||0||2.00|
Enduro Royalty Trust presently has a consensus target price of $3.75, suggesting a potential upside of 10.29%. Clayton Williams Energy has a consensus target price of $69.50, suggesting a potential downside of 47.31%. Given Enduro Royalty Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe Enduro Royalty Trust is more favorable than Clayton Williams Energy.
Risk & Volatility
Enduro Royalty Trust has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Clayton Williams Energy has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500.
Valuation and Earnings
This table compares Enduro Royalty Trust and Clayton Williams Energy’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Enduro Royalty Trust||$8.43 million||13.31||$8.25 million||$0.25||13.60|
|Clayton Williams Energy||N/A||N/A||N/A||($23.46)||-5.62|
Enduro Royalty Trust has higher revenue and earnings than Clayton Williams Energy. Clayton Williams Energy is trading at a lower price-to-earnings ratio than Enduro Royalty Trust, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
57.6% of Enduro Royalty Trust shares are owned by institutional investors. Comparatively, 67.8% of Clayton Williams Energy shares are owned by institutional investors. 36.4% of Clayton Williams Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Enduro Royalty Trust pays an annual dividend of $0.18 per share and has a dividend yield of 5.3%. Clayton Williams Energy does not pay a dividend. Enduro Royalty Trust pays out 72.0% of its earnings in the form of a dividend.
This table compares Enduro Royalty Trust and Clayton Williams Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enduro Royalty Trust||20.87%||7.30%||7.30%|
|Clayton Williams Energy||-16.83%||-63.50%||-7.44%|
Enduro Royalty Trust beats Clayton Williams Energy on 9 of the 13 factors compared between the two stocks.
Enduro Royalty Trust Company Profile
Enduro Royalty Trust (the Trust) is a statutory trust formed by Enduro Resource Partners LLC (Enduro), as trustor, The Bank of New York Mellon Trust Company, N.A. (the Trustee), as trustee, and Wilmington Trust Company (the Delaware Trustee), as Delaware Trustee. The Trust was created to acquire and hold for the benefit of the Trust unitholders a net profits interest representing the right to receive approximately 80% of the net profits from the sale of oil and natural gas production from certain properties in the states of Texas, Louisiana and New Mexico held by Enduro as of the date of the conveyance of the net profits interest to the Trust (the Net Profits Interest). The properties in which the Trust holds the Net Profits Interest are referred to as the Underlying Properties. Enduro is engaged in the production and development of oil and natural gas. The Underlying Properties comprises producing and non-producing interests in oil and natural gas units, wells and lands.
Clayton Williams Energy Company Profile
Clayton Williams Energy, Inc. is an independent oil and gas company engaged in the exploration for and production of oil and natural gas primarily in its core area in Southern Reeves County, Texas. The Company operates through two segments: oil and gas exploration and production, and contract drilling services. The Company focuses on developmental drilling in prolific oil shale provinces. The Company has holdings in the oil shale plays in the United States, the Wolfcamp Shale in the Southern Delaware Basin of West Texas. Its exploration program consists of generating exploratory prospects, leasing the acreage related to these prospects, drilling exploratory wells on these prospects to determine if recoverable oil and gas reserves exist, drilling developmental wells on these prospects and producing and selling any resulting oil and gas production. The Permian Basin is a sedimentary basin in West Texas and Southeastern New Mexico.
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