Cross Timbers Royalty Trust (NYSE:CRT) vs. Shell (NYSE:SHEL) Head-To-Head Analysis

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

Analyst Recommendations

This is a breakdown of current recommendations for Cross Timbers Royalty Trust and Shell, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cross Timbers Royalty Trust	0	1	0	0	2.00
Shell	0	9	7	2	2.61

Shell has a consensus target price of $106.63, indicating a potential upside of 4.97%. Given Shell’s stronger consensus rating and higher possible upside, analysts plainly believe Shell is more favorable than Cross Timbers Royalty Trust.

Profitability

This table compares Cross Timbers Royalty Trust and Shell’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%
Shell	8.55%	14.34%	6.74%

Dividends

Cross Timbers Royalty Trust pays an annual dividend of $0.77 per share and has a dividend yield of 6.4%. Shell pays an annual dividend of $3.12 per share and has a dividend yield of 3.1%. 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. Shell pays out 34.4% of its earnings in the form of a dividend.

Volatility & Risk

Cross Timbers Royalty Trust has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500. Comparatively, Shell has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cross Timbers Royalty Trust and Shell”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cross Timbers Royalty Trust	$4.25 million	17.05	$6.15 million	$0.53	22.80
Shell	$273.73 billion	1.04	$17.84 billion	$9.06	11.21

Shell has higher revenue and earnings than Cross Timbers Royalty Trust. Shell 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.

Insider & Institutional Ownership

9.7% of Cross Timbers Royalty Trust shares are held by institutional investors. Comparatively, 28.6% of Shell shares are held by institutional investors. 9.4% of Cross Timbers Royalty Trust shares are held by company insiders. Comparatively, 1.0% of Shell shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Shell 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 Shell

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.