Royale Energy (ROYL) versus The Competition Critical Analysis

Royale Energy (OTCMKTS:ROYL) is one of 268 publicly-traded companies in the “Crude petroleum & natural gas” industry, but how does it weigh in compared to its peers? We will compare Royale Energy to related companies based on the strength of its valuation, profitability, risk, dividends, analyst recommendations, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Royale Energy and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royale Energy	0	0	0	0	N/A
Royale Energy Competitors	2072	11293	15783	579	2.50

As a group, “Crude petroleum & natural gas” companies have a potential upside of 24.23%. Given Royale Energy’s peers higher possible upside, analysts plainly believe Royale Energy has less favorable growth aspects than its peers.

Profitability

This table compares Royale Energy and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royale Energy	-117.54%	N/A	N/A
Royale Energy Competitors	-1.62%	6.81%	6.55%

Insider & Institutional Ownership

54.0% of shares of all “Crude petroleum & natural gas” companies are owned by institutional investors. 61.8% of Royale Energy shares are owned by company insiders. Comparatively, 9.4% of shares of all “Crude petroleum & natural gas” companies 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.

Earnings and Valuation

This table compares Royale Energy and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Royale Energy	$2.16 million	-$1.83 million	-1.48
Royale Energy Competitors	$760.25 billion	$972.72 million	25.97

Royale Energy’s peers have higher revenue and earnings than Royale Energy. Royale Energy is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Royale Energy has a beta of 0.03, meaning that its stock price is 97% less volatile than the S&P 500. Comparatively, Royale Energy’s peers have a beta of -14.86, meaning that their average stock price is 1,586% less volatile than the S&P 500.

Summary

Royale Energy peers beat Royale Energy on 8 of the 10 factors compared.

Royale Energy Company Profile

Royale Energy, Inc. acquires, explores for, develops, produces, and sells oil and natural gas properties in the United States. Its principal operations are located in the Sacramento Basin and San Joaquin Basin in California, as well as in Utah, Texas, Oklahoma, Louisiana, and Colorado. Royale Energy, Inc. was incorporated in 1986 and is based in El Cajon, California.