Contrasting Permianville Royalty Trust (NYSE:PVL) & Extraction Oil & Gas (OTCMKTS:XOGAQ)

Permianville Royalty Trust (NYSE:PVL) and Extraction Oil & Gas (OTCMKTS:XOGAQ) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Valuation & Earnings

This table compares Permianville Royalty Trust and Extraction Oil & Gas”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permianville Royalty Trust	$3.26 million	17.09	$10.60 million	$0.30	5.63
Extraction Oil & Gas	$906.64 million	0.01	-$1.39 billion	($0.46)	-0.13

Permianville Royalty Trust has higher earnings, but lower revenue than Extraction Oil & Gas. Extraction Oil & Gas is trading at a lower price-to-earnings ratio than Permianville Royalty Trust, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

6.8% of Permianville Royalty Trust shares are held by institutional investors. Comparatively, 38.6% of Extraction Oil & Gas shares are held by institutional investors. 6.0% of Extraction Oil & Gas shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Permianville Royalty Trust and Extraction Oil & Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permianville Royalty Trust	0	0	0	0	N/A
Extraction Oil & Gas	0	0	0	0	N/A

Volatility and Risk

Permianville Royalty Trust has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Extraction Oil & Gas has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500.

Profitability

This table compares Permianville Royalty Trust and Extraction Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Permianville Royalty Trust	15.44%	14.80%	14.74%
Extraction Oil & Gas	-223.86%	-56.20%	-11.52%

Summary

Permianville Royalty Trust beats Extraction Oil & Gas on 7 of the 11 factors compared between the two stocks.

About Permianville Royalty Trust

Permianville Royalty Trust operates as a statutory trust. It is involved in the acquisition and holding of net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from properties located in the states of Texas, Louisiana, and New Mexico. The company was formerly known as Enduro Royalty Trust and changed its name to Permianville Royalty Trust in September 2018. Permianville Royalty Trust was incorporated in 2011 and is based in Houston, Texas.

About Extraction Oil & Gas

Extraction Oil & Gas, Inc., an independent oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquid reserves in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg (DJ) Basin of Colorado. The company also engages in the construction and support of midstream assets to gather, process, and produce crude oil and gas. As of December 31, 2019, it had approximately 169,900 net acres of contiguous acreage blocks in the productive areas of the DJ Basin; held approximately 125,500 net acres outside of the Core DJ Basin; had estimated proved reserves of approximately 254.1 MMBoe; and had 1,509 gross producing wells. The company was founded in 2012 and is headquartered in Denver, Colorado. On June 14, 2020, Extraction Oil & Gas, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.