Financial Comparison: Kimbell Royalty Partners (NYSE:KRP) versus Blue Dolphin Energy (OTCMKTS:BDCO)

Kimbell Royalty Partners (NYSE:KRP) and Blue Dolphin Energy (OTCMKTS:BDCO) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Insider & Institutional Ownership

25.8% of Kimbell Royalty Partners shares are held by institutional investors. 5.6% of Kimbell Royalty Partners shares are held by company insiders. Comparatively, 87.5% of Blue Dolphin Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Kimbell Royalty Partners and Blue Dolphin Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimbell Royalty Partners	1	0	4	1	2.83
Blue Dolphin Energy	0	0	0	0	N/A

Kimbell Royalty Partners currently has a consensus target price of $20.67, suggesting a potential upside of 26.79%. Given Kimbell Royalty Partners’ higher probable upside, analysts plainly believe Kimbell Royalty Partners is more favorable than Blue Dolphin Energy.

Risk & Volatility

Kimbell Royalty Partners has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Blue Dolphin Energy has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500.

Earnings & Valuation

This table compares Kimbell Royalty Partners and Blue Dolphin Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimbell Royalty Partners	$321.86 million	4.84	$66.54 million	$0.60	27.17
Blue Dolphin Energy	$396.05 million	0.16	$31.01 million	$1.40	3.06

Kimbell Royalty Partners has higher earnings, but lower revenue than Blue Dolphin Energy. Blue Dolphin Energy is trading at a lower price-to-earnings ratio than Kimbell Royalty Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kimbell Royalty Partners and Blue Dolphin Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimbell Royalty Partners	10.74%	5.03%	2.66%
Blue Dolphin Energy	4.34%	39.12%	15.23%

Summary

Kimbell Royalty Partners beats Blue Dolphin Energy on 9 of the 14 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 Blue Dolphin Energy

Blue Dolphin Energy Company, an independent downstream energy company, engages in the refining and marketing of petroleum products in the United States. It operates through two segments, Refinery Operations, and Tolling and Terminaling. The company produces finished products, including jet fuel, as well as various intermediate products, such as naphtha, heavy oil mud blendstock, and atmospheric gas oil; and conducts tolling and terminaling services at the Nixon facility. It also provides storage tank rentals and ancillary services. The company was incorporated in 1986 and is headquartered in Houston, Texas. Blue Dolphin Energy Company is a subsidiary of Lazarus Energy Holdings, LLC.