Contrasting PermRock Royalty Trust (NYSE:PRT) and Permianville Royalty Trust (NYSE:PVL)

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

Valuation & Earnings

This table compares Permianville Royalty Trust and PermRock 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
Permianville Royalty Trust	$45.21 million	1.19	$10.60 million	$0.24	6.79
PermRock Royalty Trust	$7.19 million	6.70	$6.26 million	$0.43	9.21

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

Profitability

This table compares Permianville Royalty Trust and PermRock Royalty Trust’s 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%
PermRock Royalty Trust	85.38%	6.99%	6.86%

Volatility & Risk

Permianville Royalty Trust has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, PermRock Royalty Trust has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Insider and Institutional Ownership

6.8% of Permianville Royalty Trust shares are held by institutional investors. Comparatively, 41.7% of PermRock Royalty Trust shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Permianville Royalty Trust pays an annual dividend of $0.17 per share and has a dividend yield of 10.4%. PermRock Royalty Trust pays an annual dividend of $0.36 per share and has a dividend yield of 9.1%. Permianville Royalty Trust pays out 70.8% of its earnings in the form of a dividend. PermRock Royalty Trust pays out 83.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Permianville Royalty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations for Permianville Royalty Trust and PermRock Royalty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permianville Royalty Trust	0	0	0	0	N/A
PermRock Royalty Trust	0	0	0	0	N/A

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 PermRock Royalty Trust

PermRock Royalty Trust operates as a statutory trust. It owns interests in the oil and natural gas producing properties. The company's underlying properties include 22,394 net acres in the Permian Basin. The company was founded in 2017 and is based in Dallas, Texas.