Critical Comparison: Pacific Coast Oil Trust (OTCMKTS:ROYTL) & Viper Energy (NASDAQ:VNOM)

Pacific Coast Oil Trust (OTCMKTS:ROYTL) and Viper Energy (NASDAQ:VNOM) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pacific Coast Oil Trust and Viper Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Coast Oil Trust	0	0	0	0	0.00
Viper Energy	0	0	13	0	3.00

Viper Energy has a consensus target price of $56.85, indicating a potential upside of 33.69%. Given Viper Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Viper Energy is more favorable than Pacific Coast Oil Trust.

Profitability

This table compares Pacific Coast Oil Trust and Viper Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Coast Oil Trust	N/A	N/A	N/A
Viper Energy	24.65%	6.72%	4.98%

Earnings & Valuation

This table compares Pacific Coast Oil Trust and Viper Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Coast Oil Trust	N/A	N/A	N/A	N/A	N/A
Viper Energy	$899.75 million	13.64	$200.09 million	$3.80	11.19

Viper Energy has higher revenue and earnings than Pacific Coast Oil Trust.

Institutional & Insider Ownership

87.7% of Viper Energy shares are held by institutional investors. 0.3% of Viper Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Pacific Coast Oil Trust has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500. Comparatively, Viper Energy has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Summary

Viper Energy beats Pacific Coast Oil Trust on 10 of the 10 factors compared between the two stocks.

About Pacific Coast Oil Trust

Pacific Coast Oil Trust acquires and holds net profits and royalty interests in various oil and natural gas properties located in California. Its properties include Orcutt properties located in the Santa Maria Basin; and West Pico, East Coyote, and Sawtelle properties located in the Los Angeles Basin of California. Pacific Coast Oil Trust was founded in 2012 and is based in Houston, Texas.

About Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.