Head to Head Analysis: Navigator (NYSE:NVGS) and Cross Timbers Royalty Trust (NYSE:CRT)

Cross Timbers Royalty Trust (NYSE:CRT) and Navigator (NYSE:NVGS) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Earnings & Valuation

This table compares Cross Timbers Royalty Trust and Navigator”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cross Timbers Royalty Trust	$4.25 million	15.97	$6.15 million	$0.53	21.36
Navigator	$586.96 million	2.47	$100.12 million	$2.17	10.87

Navigator has higher revenue and earnings than Cross Timbers Royalty Trust. Navigator is trading at a lower price-to-earnings ratio than Cross Timbers Royalty Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

Cross Timbers Royalty Trust pays an annual dividend of $0.77 per share and has a dividend yield of 6.8%. Navigator pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Cross Timbers Royalty Trust pays out 145.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Navigator pays out 12.9% of its earnings in the form of a dividend. Navigator has increased its dividend for 1 consecutive years.

Profitability

This table compares Cross Timbers Royalty Trust and Navigator’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cross Timbers Royalty Trust	74.04%	147.68%	81.96%
Navigator	22.80%	10.45%	5.73%

Risk and Volatility

Cross Timbers Royalty Trust has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500. Comparatively, Navigator has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Cross Timbers Royalty Trust and Navigator, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cross Timbers Royalty Trust	0	1	0	0	2.00
Navigator	0	1	4	0	2.80

Navigator has a consensus target price of $23.00, indicating a potential downside of 2.47%. Given Navigator’s stronger consensus rating and higher possible upside, analysts clearly believe Navigator is more favorable than Cross Timbers Royalty Trust.

Insider and Institutional Ownership

9.7% of Cross Timbers Royalty Trust shares are owned by institutional investors. Comparatively, 19.0% of Navigator shares are owned by institutional investors. 9.4% of Cross Timbers Royalty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Navigator beats Cross Timbers Royalty Trust on 10 of the 17 factors compared between the two stocks.

About Cross Timbers Royalty Trust

Cross Timbers Royalty Trust operates as an express trust in the United States. It holds 90% net profits interests in certain producing and nonproducing royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico; and 75% net profits working interest in four properties in Texas and three properties in Oklahoma. The company was founded in 1991 and is based in Dallas, Texas.

About Navigator

Navigator Holdings Ltd. engages in owning and operating a fleet of liquefied gas carriers worldwide. It provides international and regional seaborne transportation services of petrochemical gases, liquefied petroleum gases, and ammonia for energy companies, industrial users, and commodity traders. The company also offers ship shore infrastructure and consultancy services. It operates a fleet of 56 semi- or fully-refrigerated liquefied gas carriers. The company was formerly known as Isle of Man public limited company and changed its name to Navigator Holdings Ltd. in 2006. Navigator Holdings Ltd. was incorporated in 1997 and is based in London, the United Kingdom.