Contrasting Viper Energy (NASDAQ:VNOM) and Pacific Coast Oil Trust (OTCMKTS:ROYTL)

Viper Energy (NASDAQ:VNOM) and Pacific Coast Oil Trust (OTCMKTS:ROYTL) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Volatility and Risk

Viper Energy has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Pacific Coast Oil Trust has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500.

Institutional and Insider Ownership

87.7% of Viper Energy shares are held by institutional investors. 0.3% of Viper Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Viper Energy and Pacific Coast Oil Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viper Energy	$899.75 million	13.64	$200.09 million	$3.80	11.19
Pacific Coast Oil Trust	N/A	N/A	N/A	N/A	N/A

Viper Energy has higher revenue and earnings than Pacific Coast Oil Trust.

Profitability

This table compares Viper Energy and Pacific Coast Oil Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viper Energy	24.65%	6.72%	4.98%
Pacific Coast Oil Trust	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and target prices for Viper Energy and Pacific Coast Oil Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viper Energy	0	0	13	0	3.00
Pacific Coast Oil Trust	0	0	0	0	0.00

Viper Energy presently has a consensus price target of $56.85, indicating a potential upside of 33.69%. Given Viper Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Viper Energy is more favorable than Pacific Coast Oil Trust.

Summary

Viper Energy beats Pacific Coast Oil Trust on 10 of the 10 factors compared between the two stocks.

About Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

About Pacific Coast Oil Trust

Pacific Coast Oil Trust acquires and holds net profits and royalty interests in various oil and natural gas properties located in California. Its properties include Orcutt properties located in the Santa Maria Basin; and West Pico, East Coyote, and Sawtelle properties located in the Los Angeles Basin of California. Pacific Coast Oil Trust was founded in 2012 and is based in Houston, Texas.