Torchlight Energy Resources (NASDAQ:TRCH) and Viper Energy Partners (NASDAQ:VNOM) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.
Volatility & Risk
Torchlight Energy Resources has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, Viper Energy Partners has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
Viper Energy Partners pays an annual dividend of $1.52 per share and has a dividend yield of 4.9%. Torchlight Energy Resources does not pay a dividend. Viper Energy Partners pays out 140.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Viper Energy Partners has raised its dividend for 2 consecutive years.
This is a breakdown of recent recommendations and price targets for Torchlight Energy Resources and Viper Energy Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Torchlight Energy Resources||0||0||2||0||3.00|
|Viper Energy Partners||0||0||13||1||3.07|
Torchlight Energy Resources currently has a consensus target price of $2.85, indicating a potential upside of 100.70%. Viper Energy Partners has a consensus target price of $42.23, indicating a potential upside of 37.02%. Given Torchlight Energy Resources’ higher possible upside, research analysts plainly believe Torchlight Energy Resources is more favorable than Viper Energy Partners.
Valuation & Earnings
This table compares Torchlight Energy Resources and Viper Energy Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Torchlight Energy Resources||$1.28 million||79.54||-$5.81 million||N/A||N/A|
|Viper Energy Partners||$288.82 million||14.41||$143.95 million||$1.08||28.54|
Viper Energy Partners has higher revenue and earnings than Torchlight Energy Resources.
This table compares Torchlight Energy Resources and Viper Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Torchlight Energy Resources||-508.63%||-30.21%||-15.11%|
|Viper Energy Partners||46.62%||2.33%||1.88%|
Institutional and Insider Ownership
7.7% of Torchlight Energy Resources shares are owned by institutional investors. Comparatively, 38.9% of Viper Energy Partners shares are owned by institutional investors. 29.3% of Torchlight Energy Resources shares are owned by company insiders. Comparatively, 0.3% of Viper Energy Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Viper Energy Partners beats Torchlight Energy Resources on 11 of the 16 factors compared between the two stocks.
Torchlight Energy Resources Company Profile
Torchlight Energy Resources, Inc., through its subsidiaries, engages in the acquisition, exploration, exploitation, and/or development of oil and natural gas properties in the United States. As of December 31, 2018, it had interests in four oil and gas projects, including the Orogrande project in Hudspeth County, Texas; Hazel project in Sterling, Tom Green, and Irion Counties, Texas; Winkler project in Winkler County, Texas; and Hunton wells in partnership with Husky Ventures in central Oklahoma. The company was founded in 2010 and is headquartered in Plano, Texas.
Viper Energy Partners Company Profile
Viper Energy Partners LP owns, acquires, and exploits oil and natural gas properties in North America. As of December 31, 2018, it had mineral interests in 14,841 net royalty acres in the Permian Basin and Eagle Ford Shale with estimated proved oil and natural gas reserves of 63,136 thousand barrels of crude oil equivalent. Viper Energy Partners GP LLC operates as the general partner of the company. The company was founded in 2013 and is based in Midland, Texas.
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