Financial Analysis: Gibson Energy (OTCMKTS:GBNXF) & BP Prudhoe Bay Royalty Trust (NYSE:BPT)

Gibson Energy (OTCMKTS:GBNXF) and BP Prudhoe Bay Royalty Trust (NYSE:BPT) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Institutional & Insider Ownership

0.2% of Gibson Energy shares are owned by institutional investors. Comparatively, 5.7% of BP Prudhoe Bay Royalty Trust shares are owned by institutional investors. 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 Gibson Energy and BP Prudhoe Bay Royalty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gibson Energy	1.41%	20.55%	3.81%
BP Prudhoe Bay Royalty Trust	N/A	-10,476.57%	-9,688.92%

Valuation and Earnings

This table compares Gibson Energy and BP Prudhoe Bay Royalty Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gibson Energy	$8.16 billion	0.32	$158.69 million	$0.78	20.85
BP Prudhoe Bay Royalty Trust	$6.64 million	3.71	$5.60 million	N/A	N/A

Gibson Energy has higher revenue and earnings than BP Prudhoe Bay Royalty Trust.

Dividends

Gibson Energy pays an annual dividend of $1.21 per share and has a dividend yield of 7.4%. BP Prudhoe Bay Royalty Trust pays an annual dividend of $1.19 per share and has a dividend yield of 103.5%. Gibson Energy pays out 155.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Gibson Energy has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, BP Prudhoe Bay Royalty Trust has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Gibson Energy and BP Prudhoe Bay Royalty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gibson Energy	0	0	1	0	3.00
BP Prudhoe Bay Royalty Trust	0	0	0	0	N/A

Summary

Gibson Energy beats BP Prudhoe Bay Royalty Trust on 7 of the 11 factors compared between the two stocks.

About Gibson Energy

Gibson Energy Inc., together with its subsidiaries, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in Canada and the United States. It operates through Infrastructure and Marketing segments. The Infrastructure segment operates a network of liquid infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, a crude oil processing facility, and other terminals. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product. It serves producers, refiners, marketers, and integrated companies, as well as exploration and production companies. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.

About BP Prudhoe Bay Royalty Trust

BP Prudhoe Bay Royalty Trust operates as a grantor trust in the United States. It is involved in holding overriding royalty interest in the Prudhoe Bay oil field located on the North Slope of Alaska. The Prudhoe Bay field extends approximately 12 miles by 27 miles and contains approximately 150,000 gross productive acres. BP Prudhoe Bay Royalty Trust was incorporated in 1989 and is based in Houston, Texas.