Kimbell Royalty Partners (NYSE:KRP) & Sable Offshore (NYSE:SOC) Financial Contrast

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

Risk & Volatility

Kimbell Royalty Partners has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Sable Offshore has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.

Earnings & Valuation

This table compares Kimbell Royalty Partners and Sable Offshore’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	5.37	$66.54 million	$0.60	27.57
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A

Kimbell Royalty Partners has higher revenue and earnings than Sable Offshore.

Profitability

This table compares Kimbell Royalty Partners and Sable Offshore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimbell Royalty Partners	12.93%	5.74%	3.23%
Sable Offshore	N/A	-480.87%	-53.14%

Analyst Ratings

This is a summary of recent ratings and target prices for Kimbell Royalty Partners and Sable Offshore, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimbell Royalty Partners	1	0	4	1	2.83
Sable Offshore	0	0	1	0	3.00

Kimbell Royalty Partners presently has a consensus target price of $20.67, indicating a potential upside of 24.95%. Sable Offshore has a consensus target price of $20.00, indicating a potential upside of 29.87%. Given Sable Offshore’s stronger consensus rating and higher possible upside, analysts plainly believe Sable Offshore is more favorable than Kimbell Royalty Partners.

Institutional & Insider Ownership

25.8% of Kimbell Royalty Partners shares are held by institutional investors. Comparatively, 26.2% of Sable Offshore shares are held by institutional investors. 5.6% of Kimbell Royalty Partners shares are held by insiders. Comparatively, 14.3% of Sable Offshore shares are held by 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

Kimbell Royalty Partners beats Sable Offshore on 8 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 Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.