Kimbell Royalty Partners (NYSE:KRP) versus Sable Offshore (NYSE:SOC) Financial Analysis

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

Valuation & Earnings

This table compares Sable Offshore and Kimbell Royalty Partners’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A
Kimbell Royalty Partners	$294.07 million	5.31	$66.54 million	$0.60	27.27

Kimbell Royalty Partners has higher revenue and earnings than Sable Offshore.

Institutional and Insider Ownership

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sable Offshore and Kimbell Royalty Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	0	0	1	0	3.00
Kimbell Royalty Partners	1	0	5	1	2.86

Sable Offshore presently has a consensus price target of $20.00, suggesting a potential upside of 32.71%. Kimbell Royalty Partners has a consensus price target of $20.57, suggesting a potential upside of 25.74%. Given Sable Offshore’s stronger consensus rating and higher probable upside, equities analysts plainly believe Sable Offshore is more favorable than Kimbell Royalty Partners.

Profitability

This table compares Sable Offshore and Kimbell Royalty Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sable Offshore	N/A	-480.87%	-53.14%
Kimbell Royalty Partners	12.93%	5.74%	3.23%

Volatility and Risk

Sable Offshore has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500. Comparatively, Kimbell Royalty Partners has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Summary

Kimbell Royalty Partners beats Sable Offshore on 8 of the 12 factors compared between the two stocks.

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.

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.