Vital Energy (NYSE:VTLE) & Kimbell Royalty Partners (NYSE:KRP) Critical Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vital Energy	-8.89%	9.48%	4.68%
Kimbell Royalty Partners	11.33%	5.82%	3.05%

Insider & Institutional Ownership

86.5% of Vital Energy shares are owned by institutional investors. Comparatively, 25.8% of Kimbell Royalty Partners shares are owned by institutional investors. 1.2% of Vital Energy 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Vital Energy and Kimbell Royalty Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vital Energy	2	6	2	0	2.00
Kimbell Royalty Partners	1	0	2	1	2.75

Vital Energy presently has a consensus target price of $45.70, suggesting a potential upside of 70.91%. Kimbell Royalty Partners has a consensus target price of $20.25, suggesting a potential upside of 32.27%. Given Vital Energy’s higher possible upside, analysts plainly believe Vital Energy is more favorable than Kimbell Royalty Partners.

Volatility & Risk

Vital Energy has a beta of 3.12, suggesting that its stock price is 212% more volatile than the S&P 500. Comparatively, Kimbell Royalty Partners has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Valuation and Earnings

This table compares Vital Energy and Kimbell Royalty Partners”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vital Energy	$1.95 billion	0.52	$695.08 million	($4.75)	-5.63
Kimbell Royalty Partners	$324.31 million	4.51	$66.54 million	$0.51	30.02

Vital Energy has higher revenue and earnings than Kimbell Royalty Partners. Vital 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.

About Vital Energy

Vital Energy, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company was formerly known as Laredo Petroleum, Inc. and changed its name to Vital Energy, Inc. in January 2023. Vital Energy, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.

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.