Contrasting Noble (NYSE:NE) and Royale Energy (OTCMKTS:ROYL)
by Jessica Moore · The Cerbat GemNoble (NYSE:NE – Get Free Report) and Royale Energy (OTCMKTS:ROYL – Get Free Report) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Insider and Institutional Ownership
68.1% of Noble shares are owned by institutional investors. 1.5% of Noble shares are owned by insiders. Comparatively, 61.8% of Royale Energy shares are owned by 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.
Profitability
This table compares Noble and Royale Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Noble | 7.17% | 2.32% | 1.40% |
| Royale Energy | -129.71% | N/A | -15.97% |
Earnings & Valuation
This table compares Noble and Royale Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Noble | $3.29 billion | 2.06 | $216.72 million | $1.43 | 29.61 |
| Royale Energy | $2.23 million | 4.01 | -$2.16 million | ($0.03) | -3.08 |
Noble has higher revenue and earnings than Royale Energy. Royale Energy is trading at a lower price-to-earnings ratio than Noble, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Noble has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Royale Energy has a beta of -0.32, suggesting that its stock price is 132% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Noble and Royale Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Noble | 0 | 9 | 2 | 0 | 2.18 |
| Royale Energy | 0 | 0 | 0 | 0 | 0.00 |
Noble currently has a consensus price target of $45.38, suggesting a potential upside of 7.18%. Given Noble’s stronger consensus rating and higher probable upside, analysts clearly believe Noble is more favorable than Royale Energy.
Summary
Noble beats Royale Energy on 12 of the 14 factors compared between the two stocks.
About Noble
Noble Corp. Plc engages in the provision offshore drilling services for oil and gas industry. It focuses on a balanced fleet of floating and jackup rigs and the deployment of drilling rigs in oil and gas basins around the world. The company was founded by Lloyd Noble and Art Olson in 1921 and is headquartered in London, the United Kingdom.
About Royale Energy
Royale Energy, Inc. acquires, explores for, develops, produces, and sells oil and natural gas properties in the United States. Its principal operations are located in the Sacramento Basin and San Joaquin Basin in California, as well as in Utah, Texas, Oklahoma, Louisiana, and Colorado. Royale Energy, Inc. was incorporated in 1986 and is based in El Cajon, California.