Comparing ENI (NYSE:E) and Royale Energy (OTCMKTS:ROYL)

ENI (NYSE:E) and Royale Energy (OTCMKTS:ROYL) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Risk and Volatility

ENI has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Royale Energy has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENI	$89.93 billion	0.52	$5.16 billion	$1.67	16.69
Royale Energy	$2.16 million	1.96	-$1.83 million	($0.05)	-1.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ENI	2.76%	11.03%	4.16%
Royale Energy	-145.31%	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for ENI and Royale Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENI	0	4	4	0	2.50
Royale Energy	0	0	0	0	0.00

ENI presently has a consensus target price of $39.60, indicating a potential upside of 42.09%. Given ENI’s stronger consensus rating and higher probable upside, equities analysts clearly believe ENI is more favorable than Royale Energy.

Insider & Institutional Ownership

1.2% of ENI shares are held by institutional investors. 0.0% of ENI shares are held by insiders. Comparatively, 61.8% of Royale Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

ENI beats Royale Energy on 12 of the 14 factors compared between the two stocks.

About ENI

Eni S.p.A. operates as an integrated energy company worldwide. The company engages in exploration, development, extracting, manufacturing, and marketing crude oil and natural gas, oil-based fuels, chemical products, and gas-fired power, as well as energy products from renewable sources. It operates through Exploration & Production; Global Gas & LNG Portfolio (GGP); Enilive, Refining and Chemicals; Plenitude & Power; and Corporate and Other Activities segments. The company engages in research, development, and production of oil, condensates, and natural gas. It is also involved in the supply and sale of wholesale natural gas through pipeline; and international transport, and purchase and marketing of liquefied natural gas. In addition, the company supplies bio-feedstock and crude oil; and stores, produces, distributes, and markets biofuels, oil products, biomethane, basic chemical and petrochemical products, intermediates, plastics and elastomers, and other chemicals, as well as provides smart mobility solutions and mobility services. Further, it engages in the retail marketing of gas, electricity, and related services; production and wholesale sale of electricity from thermoelectric and renewable plants; and provision of services for E-mobility. The company was founded in 1953 and is headquartered in Rome, Italy.

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.