Comparing Cross Timbers Royalty Trust (NYSE:CRT) & Green Plains (NASDAQ:GPRE)
by Mitch Edgeman · The Markets DailyGreen Plains (NASDAQ:GPRE – Get Free Report) and Cross Timbers Royalty Trust (NYSE:CRT – Get Free Report) are both small-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares Green Plains and Cross Timbers Royalty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Green Plains | 6.78% | 14.52% | 7.33% |
| Cross Timbers Royalty Trust | 74.04% | 147.68% | 81.96% |
Earnings and Valuation
This table compares Green Plains and Cross Timbers Royalty Trust”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Green Plains | $2.09 billion | 0.47 | -$121.28 million | $1.59 | 8.75 |
| Cross Timbers Royalty Trust | $5.79 million | 14.10 | $6.15 million | $0.53 | 25.67 |
Cross Timbers Royalty Trust has lower revenue, but higher earnings than Green Plains. Green Plains 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.
Volatility and Risk
Green Plains has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Cross Timbers Royalty Trust has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Green Plains and Cross Timbers Royalty Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Green Plains | 0 | 5 | 2 | 0 | 2.29 |
| Cross Timbers Royalty Trust | 0 | 1 | 0 | 0 | 2.00 |
Green Plains currently has a consensus target price of $17.00, indicating a potential upside of 22.21%. Given Green Plains’ stronger consensus rating and higher probable upside, analysts clearly believe Green Plains is more favorable than Cross Timbers Royalty Trust.
Institutional & Insider Ownership
9.7% of Cross Timbers Royalty Trust shares are owned by institutional investors. 1.4% of Green Plains shares are owned by insiders. Comparatively, 9.4% of Cross Timbers Royalty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Cross Timbers Royalty Trust beats Green Plains on 8 of the 14 factors compared between the two stocks.
About Green Plains
Green Plains Inc. produces low-carbon fuels in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces ethanol, distillers grains, and ultra-high protein and renewable corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling and storage, commodity marketing business; and trading of ethanol, distiller grains, renewable corn oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services. It operates 24 ethanol storage facilities; two fuel terminal facilities; and a fleet of approximately 2,180 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was incorporated in 2004 and is headquartered in Omaha, Nebraska.
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.