Critical Analysis: Royale Energy (ROYL) & Its Peers

Royale Energy (OTCMKTS:ROYL) is one of 270 public companies in the “Crude petroleum & natural gas” industry, but how does it weigh in compared to its peers? We will compare Royale Energy to similar companies based on the strength of its dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Royale Energy and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royale Energy	0	0	0	0	N/A
Royale Energy Competitors	2130	11445	15911	597	2.50

As a group, “Crude petroleum & natural gas” companies have a potential upside of 24.60%. Given Royale Energy’s peers higher possible upside, analysts clearly believe Royale Energy has less favorable growth aspects than its peers.

Risk & Volatility

Royale Energy has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500. Comparatively, Royale Energy’s peers have a beta of -14.64, meaning that their average share price is 1,564% less volatile than the S&P 500.

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	-1.63%	6.96%	6.59%

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Royale Energy	$2.16 million	-$1.83 million	-1.50
Royale Energy Competitors	$756.58 billion	$1.11 billion	26.80

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.

Institutional & Insider Ownership

54.3% of shares of all “Crude petroleum & natural gas” companies are held by institutional investors. 61.8% of Royale Energy shares are held by company insiders. Comparatively, 9.4% of shares of all “Crude petroleum & natural gas” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

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.