Comparing Royale Energy (OTCMKTS:ROYL) & ENI (NYSE:E)

Royale Energy (OTCMKTS:ROYL) and ENI (NYSE:E) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Profitability

This table compares Royale Energy and ENI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royale Energy	-145.31%	N/A	N/A
ENI	2.76%	11.03%	4.16%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Royale Energy and ENI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royale Energy	0	0	0	0	0.00
ENI	0	4	4	0	2.50

ENI has a consensus target price of $39.60, suggesting a potential upside of 47.54%. Given ENI’s stronger consensus rating and higher probable upside, analysts clearly believe ENI is more favorable than Royale Energy.

Insider and Institutional Ownership

1.2% of ENI shares are held by institutional investors. 61.8% of Royale Energy shares are held by company insiders. Comparatively, 0.0% of ENI shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Royale Energy has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500. Comparatively, ENI has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Earnings & Valuation

This table compares Royale Energy and ENI”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royale Energy	$2.16 million	1.63	-$1.83 million	($0.05)	-1.00
ENI	$89.93 billion	0.50	$5.16 billion	$1.67	16.07

ENI has higher revenue and earnings than Royale Energy. Royale Energy is trading at a lower price-to-earnings ratio than ENI, indicating that it is currently the more affordable of the two stocks.

Summary

ENI beats Royale Energy on 12 of the 14 factors compared between the two stocks.

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.

About ENI

Eni S.p.A. operates as an integrated energy company worldwide. The company engages in exploration, development, extracting, manufacturing, and marketing crude oil and natural gas, oil-based fuels, chemical products, and gas-fired power, as well as energy products from renewable sources. It operates through Exploration & Production; Global Gas & LNG Portfolio (GGP); Enilive, Refining and Chemicals; Plenitude & Power; and Corporate and Other Activities segments. The company engages in research, development, and production of oil, condensates, and natural gas. It is also involved in the supply and sale of wholesale natural gas through pipeline; and international transport, and purchase and marketing of liquefied natural gas. In addition, the company supplies bio-feedstock and crude oil; and stores, produces, distributes, and markets biofuels, oil products, biomethane, basic chemical and petrochemical products, intermediates, plastics and elastomers, and other chemicals, as well as provides smart mobility solutions and mobility services. Further, it engages in the retail marketing of gas, electricity, and related services; production and wholesale sale of electricity from thermoelectric and renewable plants; and provision of services for E-mobility. The company was founded in 1953 and is headquartered in Rome, Italy.