Mesa Royalty Trust (NYSE:MTR – Get Free Report) and Toro (NASDAQ:TORO – Get Free Report) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Mesa Royalty Trust and Toro, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mesa Royalty Trust | 1 | 0 | 0 | 0 | 1.00 |
| Toro | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares Mesa Royalty Trust and Toro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mesa Royalty Trust | 60.59% | 9.17% | 8.82% |
| Toro | 16.42% | 2.04% | 1.17% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mesa Royalty Trust | $476,742.00 | 7.59 | $510,000.00 | $0.16 | 12.12 |
| Toro | $21.08 million | 4.12 | $5.93 million | ($0.11) | -36.82 |
Toro has higher revenue and earnings than Mesa Royalty Trust. Toro is trading at a lower price-to-earnings ratio than Mesa Royalty Trust, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
12.7% of Mesa Royalty Trust shares are held by institutional investors. Comparatively, 1.7% of Toro shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Mesa Royalty Trust has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Toro has a beta of 2.57, meaning that its share price is 157% more volatile than the S&P 500.
Summary
Mesa Royalty Trust beats Toro on 7 of the 11 factors compared between the two stocks.
About Mesa Royalty Trust
Mesa Royalty Trust owns overriding royalty interests in various oil and gas producing properties in the United States. It holds interests in properties located in the Hugoton field of Kansas; and the San Juan Basin field of Northwestern New Mexico and Southwestern Colorado. The company was founded in 1979 and is based in Houston, Texas.
About Toro
Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.
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