Head-To-Head Review: Royale Energy Funds (OTCMKTS:ROYL) and Bonanza Creek Energy (OTCMKTS:BCEI)

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Royale Energy Funds (OTCMKTS:ROYL) and Bonanza Creek Energy (NYSE:BCEI) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Royale Energy Funds and Bonanza Creek Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Royale Energy Funds 0 0 0 0 N/A
Bonanza Creek Energy 0 1 3 0 2.75

Bonanza Creek Energy has a consensus target price of $36.67, suggesting a potential upside of 69.67%. Given Bonanza Creek Energy’s higher possible upside, analysts clearly believe Bonanza Creek Energy is more favorable than Royale Energy Funds.

Profitability

This table compares Royale Energy Funds and Bonanza Creek Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Royale Energy Funds N/A N/A N/A
Bonanza Creek Energy 51.69% 20.92% 16.54%

Volatility and Risk

Royale Energy Funds has a beta of 4.11, suggesting that its stock price is 311% more volatile than the S&P 500. Comparatively, Bonanza Creek Energy has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Earnings and Valuation

This table compares Royale Energy Funds and Bonanza Creek Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Royale Energy Funds $1.01 million 12.18 -$2.42 million N/A N/A
Bonanza Creek Energy $276.66 million 1.61 $168.19 million N/A N/A

Bonanza Creek Energy has higher revenue and earnings than Royale Energy Funds.

Summary

Bonanza Creek Energy beats Royale Energy Funds on 7 of the 9 factors compared between the two stocks.

About Royale Energy Funds

Royale Energy, Inc. focuses on the acquisition, development, and marketing of oil and natural gas in the United States. Its principal operations are located in California's Los Angeles and Sacramento Basins. The company was founded in 1986 and is based in El Cajon, California.

About Bonanza Creek Energy

Bonanza Creek Energy, Inc., an exploration and production company, focuses on the extraction of onshore oil and related liquids-rich natural gas in the United States. The company's primary oil and liquids-weighted assets are located in the Wattenberg Field in Colorado. As of December 31, 2018, it had proved reserves of 116.8 million barrel of oil equivalent. Bonanza Creek Energy, Inc. was founded in 1999 and is headquartered in Denver, Colorado.

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