Financial Analysis: Cross Timbers Royalty Trust (NYSE:CRT) & Tamarack Valley Energy (OTCMKTS:TNEYF)

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

Analyst Ratings

This is a breakdown of recent ratings for Cross Timbers Royalty Trust and Tamarack Valley Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cross Timbers Royalty Trust	0	0	0	0	N/A
Tamarack Valley Energy	0	1	0	0	2.00

Tamarack Valley Energy has a consensus price target of $5.00, suggesting a potential upside of 73.01%. Given Tamarack Valley Energy’s higher possible upside, analysts clearly believe Tamarack Valley Energy is more favorable than Cross Timbers Royalty Trust.

Earnings and Valuation

This table compares Cross Timbers Royalty Trust and Tamarack Valley Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cross Timbers Royalty Trust	$8.63 million	7.68	$13.13 million	$1.57	7.03
Tamarack Valley Energy	N/A	N/A	N/A	$0.44	6.58

Cross Timbers Royalty Trust has higher revenue and earnings than Tamarack Valley Energy. Tamarack Valley Energy 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cross Timbers Royalty Trust	88.84%	291.46%	189.42%
Tamarack Valley Energy	N/A	N/A	N/A

Insider & Institutional Ownership

9.7% of Cross Timbers Royalty Trust shares are held by institutional investors. Comparatively, 33.5% of Tamarack Valley Energy shares are held by institutional investors. 9.4% of Cross Timbers Royalty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Cross Timbers Royalty Trust beats Tamarack Valley Energy on 7 of the 9 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 Tamarack Valley Energy

Tamarack Valley Energy Ltd. acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Western Canadian sedimentary basin. Its oil and natural gas properties are the Cardium, Clearwater, Charlie Lake, and Enhanced Oil Recovery assets located in the province of Alberta, Canada. The company was formerly known as Tango Energy Inc. and changed its name to Tamarack Valley Energy Ltd. in June 2010. The company was incorporated in 2002 and is headquartered in Calgary, Canada.