Head-To-Head Contrast: Mexco Energy (NYSE:MXC) and Royale Energy (OTCMKTS:ROYL)

Risk and Volatility

Royale Energy has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, Mexco Energy has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Institutional & Insider Ownership

5.9% of Mexco Energy shares are held by institutional investors. 61.8% of Royale Energy shares are held by insiders. Comparatively, 53.0% of Mexco Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Royale Energy and Mexco Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royale Energy	$2.16 million	1.60	-$1.83 million	($0.05)	-0.98
Mexco Energy	$6.93 million	3.58	$1.35 million	$0.57	21.26

Mexco Energy has higher revenue and earnings than Royale Energy. Royale Energy is trading at a lower price-to-earnings ratio than Mexco Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Royale Energy and Mexco Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royale Energy	-145.31%	N/A	N/A
Mexco Energy	17.59%	6.94%	6.37%

Summary

Mexco Energy beats Royale Energy on 10 of the 11 factors compared between the two stocks.

About Royale Energy

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.

About Mexco Energy

Mexco Energy Corporation, an independent oil and gas company, engages in the acquisition, exploration, development, and production of natural gas, crude oil, condensate, and natural gas liquids in the United States. It owns partial interests in approximately 6,400 gross producing wells located in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio. It also owned leasehold mineral, royalty, and other interests in approximately 2,768 net acres. The company was formerly known as Miller Oil Company and changed its name to Mexco Energy Corporation in April 1980. Mexco Energy Corporation was incorporated in 1972 and is based in Midland, Texas.