Critical Contrast: Hugoton Royalty Trust (OTCMKTS:HGTXU) versus MV Oil Trust (NYSE:MVO)

Hugoton Royalty Trust (OTCMKTS:HGTXU) and MV Oil Trust (NYSE:MVO) are both small-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Dividends

Hugoton Royalty Trust pays an annual dividend of $0.46 per share and has a dividend yield of 144.2%. MV Oil Trust pays an annual dividend of $0.82 per share and has a dividend yield of 20.4%. MV Oil Trust pays out 78.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings and price targets for Hugoton Royalty Trust and MV Oil Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hugoton Royalty Trust	0	0	0	0	0.00
MV Oil Trust	1	0	0	0	1.00

Profitability

This table compares Hugoton Royalty Trust and MV Oil Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hugoton Royalty Trust	N/A	N/A	N/A
MV Oil Trust	92.68%	N/A	372.84%

Volatility and Risk

Hugoton Royalty Trust has a beta of -0.87, indicating that its share price is 187% less volatile than the S&P 500. Comparatively, MV Oil Trust has a beta of -0.08, indicating that its share price is 108% less volatile than the S&P 500.

Earnings and Valuation

This table compares Hugoton Royalty Trust and MV Oil Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hugoton Royalty Trust	$11.53 million	1.11	N/A	N/A	N/A
MV Oil Trust	$18.58 million	2.48	$17.65 million	$1.04	3.86

MV Oil Trust has higher revenue and earnings than Hugoton Royalty Trust.

Insider and Institutional Ownership

17.0% of Hugoton Royalty Trust shares are held by institutional investors. Comparatively, 3.5% of MV Oil Trust shares are held by institutional investors. 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.

Summary

MV Oil Trust beats Hugoton Royalty Trust on 6 of the 9 factors compared between the two stocks.

About Hugoton Royalty Trust

Hugoton Royalty Trust operates as an express trust in the United States. It holds 80% net profits interests in various natural gas producing working interest properties in Kansas, Oklahoma, and Wyoming under conveyances. The company was founded in 1998 and is based in Dallas, Texas.

About MV Oil Trust

MV Oil Trust acquires and holds term net profits interests in the oil and natural gas properties of MV Partners, LLC. Its properties wells located in the Mid-Continent region in the states of Kansas and Colorado. MV Oil Trust was incorporated in 2006 and is based in Houston, Texas.