Battalion Oil (NYSE:BATL) and Royale Energy (OTCMKTS:ROYL) Head to Head Review

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

Earnings and Valuation

This table compares Battalion Oil and Royale Energy’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Battalion Oil	$200.32 million	0.29	-$3.05 million	($4.46)	-0.78
Royale Energy	$2.16 million	1.31	-$1.83 million	N/A	N/A

Royale Energy has lower revenue, but higher earnings than Battalion Oil.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Battalion Oil	-27.77%	-70.13%	-9.01%
Royale Energy	N/A	N/A	N/A

Volatility and Risk

Battalion Oil has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Royale Energy has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.

Insider & Institutional Ownership

86.0% of Battalion Oil shares are owned by institutional investors. 56.9% of Battalion Oil shares are owned by insiders. Comparatively, 61.8% of Royale Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Battalion Oil and Royale Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Battalion Oil	0	1	0	0	2.00
Royale Energy	0	0	0	0	N/A

Battalion Oil currently has a consensus price target of $18.60, indicating a potential upside of 431.43%. Given Battalion Oil’s higher probable upside, research analysts clearly believe Battalion Oil is more favorable than Royale Energy.

Summary

Royale Energy beats Battalion Oil on 6 of the 10 factors compared between the two stocks.

About Battalion Oil

Battalion Oil Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. It holds interests in the Delaware Basin located in the counties of Pecos, Ward, Reeves, and Winkler, Texas. It serves independent marketers, and oil and natural gas and gas pipeline companies. The company was formerly known as Halcón Resources Corporation and changed its name to Battalion Oil Corporation in January 2020. Battalion Oil Corporation was founded in 1987 and is headquartered in Houston, Texas.

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.