Head to Head Comparison: Halcon Resources (OTCMKTS:HKRSQ) & Kimbell Royalty Partners (NYSE:KRP)

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

Institutional and Insider Ownership

36.7% of Kimbell Royalty Partners shares are owned by institutional investors. 6.1% of Halcon Resources shares are owned by company insiders. Comparatively, 5.6% of Kimbell Royalty Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

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

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

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Halcon Resources and Kimbell Royalty Partners, as reported by MarketBeat.

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

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

Summary

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

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.

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.