Head to Head Analysis: San Juan Basin Royalty Trust (NYSE:SJT) & Its Competitors

San Juan Basin Royalty Trust (NYSE: SJT) is one of 224 public companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its competitors? We will compare San Juan Basin Royalty Trust to related companies based on the strength of its profitability, institutional ownership, dividends, analyst recommendations, valuation, earnings and risk.

Dividends

San Juan Basin Royalty Trust pays an annual dividend of $0.86 per share and has a dividend yield of 11.0%. San Juan Basin Royalty Trust pays out 110.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.7% and pay out 290.8% of their earnings in the form of a dividend. San Juan Basin Royalty Trust has raised its dividend for 3 consecutive years. San Juan Basin Royalty Trust is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares San Juan Basin Royalty Trust and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
San Juan Basin Royalty Trust $17.53 million $13.92 million 10.03
San Juan Basin Royalty Trust Competitors $1.86 billion -$439.03 million -14.24

San Juan Basin Royalty Trust’s competitors have higher revenue, but lower earnings than San Juan Basin Royalty Trust. San Juan Basin Royalty Trust is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and price targets for San Juan Basin Royalty Trust and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
San Juan Basin Royalty Trust 0 0 0 0 N/A
San Juan Basin Royalty Trust Competitors 1474 7648 12404 259 2.53

As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 36.30%. Given San Juan Basin Royalty Trust’s competitors higher possible upside, analysts clearly believe San Juan Basin Royalty Trust has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

25.9% of San Juan Basin Royalty Trust shares are held by institutional investors. Comparatively, 61.0% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 12.5% of shares of all “Oil & Gas Exploration and Production” companies are held by 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.

Profitability

This table compares San Juan Basin Royalty Trust and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
San Juan Basin Royalty Trust 94.95% 499.42% 284.57%
San Juan Basin Royalty Trust Competitors -283.77% 25.30% 6.13%

Risk & Volatility

San Juan Basin Royalty Trust has a beta of -0.37, suggesting that its share price is 137% less volatile than the S&P 500. Comparatively, San Juan Basin Royalty Trust’s competitors have a beta of 1.38, suggesting that their average share price is 38% more volatile than the S&P 500.

Summary

San Juan Basin Royalty Trust beats its competitors on 7 of the 12 factors compared.

San Juan Basin Royalty Trust Company Profile

San Juan Basin Royalty Trust is an express trust. The principal asset of the Trust is Royalty. Its Royalty is carved from working, royalty and other oil and natural gas interests owned by Southland Royalty Company, the predecessor to Burlington Resources Oil & Gas Company LP (Burlington), in properties located in the San Juan Basin of northwestern New Mexico (Subject Interests). The Trustee of the Trust is Compass Bank. The function of the Trustee is to collect the net proceeds attributable to the Royalty, to pay all expenses and charges of the Trust and distribute the remaining available income to the Unit Holders. The Trust does not operate the Subject Interests and is not empowered to carry on any business activity. It is a widely held fixed investment trust (WHFIT) and is classified as a non-mortgage widely held fixed investment trust (NMWHFIT) for federal income tax purposes. As of December 31, 2016, 99% of the Trust’s estimated proved reserves consisted of natural gas reserves.

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