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

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

Earnings & Valuation

This table compares Kimbell Royalty Partners and Sable Offshore’s 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%

Risk & Volatility

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Kimbell Royalty Partners and Sable Offshore, as reported 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 price target of $20.67, suggesting a potential upside of 24.95%. Sable Offshore has a consensus price target of $20.00, suggesting a potential upside of 29.87%. Given Sable Offshore’s stronger consensus rating and higher possible upside, analysts clearly believe Sable Offshore is more favorable than Kimbell Royalty Partners.

Institutional & Insider Ownership

25.8% of Kimbell Royalty Partners shares are owned by institutional investors. Comparatively, 26.2% of Sable Offshore shares are owned by institutional investors. 5.6% of Kimbell Royalty Partners shares are owned by insiders. Comparatively, 14.3% of Sable Offshore shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

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.