Critical Analysis: Royale Energy (ROYL) and Its Competitors
by Amy Steele · The Cerbat GemRoyale Energy (OTCMKTS:ROYL – Get Free Report) is one of 270 publicly-traded companies in the “Crude petroleum & natural gas” industry, but how does it weigh in compared to its peers? We will compare Royale Energy to similar businesses based on the strength of its profitability, valuation, risk, earnings, institutional ownership, analyst recommendations and dividends.
Volatility & Risk
Royale Energy has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500. Comparatively, Royale Energy’s peers have a beta of -14.85, indicating that their average share price is 1,585% less volatile than the S&P 500.
Insider & Institutional Ownership
54.0% of shares of all “Crude petroleum & natural gas” companies are owned by institutional investors. 61.8% of Royale Energy shares are owned by company insiders. Comparatively, 9.4% of shares of all “Crude petroleum & natural gas” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings for Royale Energy and its peers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Royale Energy | 0 | 0 | 0 | 0 | N/A |
| Royale Energy Competitors | 2131 | 11449 | 15915 | 598 | 2.50 |
As a group, “Crude petroleum & natural gas” companies have a potential upside of 25.39%. Given Royale Energy’s peers higher probable upside, analysts plainly believe Royale Energy has less favorable growth aspects than its peers.
Profitability
This table compares Royale Energy and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Royale Energy | -117.54% | N/A | N/A |
| Royale Energy Competitors | -1.63% | 6.96% | 6.59% |
Valuation & Earnings
This table compares Royale Energy and its peers gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Royale Energy | $2.16 million | -$1.83 million | -1.19 |
| Royale Energy Competitors | $756.71 billion | $1.11 billion | -682.23 |
Royale Energy’s peers have higher revenue and earnings than Royale Energy. Royale Energy is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Summary
Royale Energy peers beat Royale Energy on 7 of the 10 factors compared.
About Royale Energy
Royale Energy, Inc. acquires, explores for, develops, produces, and sells oil and natural gas properties in the United States. Its principal operations are located in the Sacramento Basin and San Joaquin Basin in California, as well as in Utah, Texas, Oklahoma, Louisiana, and Colorado. Royale Energy, Inc. was incorporated in 1986 and is based in El Cajon, California.