Analyzing Permianville Royalty Trust (NYSE:PVL) and Gulfport Energy (OTCMKTS:GPORQ)

Permianville Royalty Trust (NYSE:PVL) and Gulfport Energy (OTCMKTS:GPORQ) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Permianville Royalty Trust and Gulfport Energy, as provided by MarketBeat.

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

Valuation & Earnings

This table compares Permianville Royalty Trust and Gulfport Energy”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	1.15	$10.60 million	$0.24	6.54
Gulfport Energy	$866.54 million	25.53	-$1.63 billion	($6.86)	-20.06

Permianville Royalty Trust has higher earnings, but lower revenue than Gulfport Energy. Gulfport Energy 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.

Profitability

This table compares Permianville Royalty Trust and Gulfport Energy’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%
Gulfport Energy	-144.45%	-93.72%	-3.48%

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, Gulfport Energy has a beta of 5.5, meaning that its stock price is 450% more volatile than the S&P 500.

Insider & Institutional Ownership

6.8% of Permianville Royalty Trust shares are owned by institutional investors. Comparatively, 0.0% of Gulfport Energy shares are owned by institutional investors. 0.5% of Gulfport Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Permianville Royalty Trust beats Gulfport Energy 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 Gulfport Energy

Gulfport Energy Corporation engages in the exploration, development, acquisition, and production of natural gas, crude oil, and natural gas liquids (NGL) in the United States. Its principal properties include Utica Shale covering an area of approximately 205,000 net reservoir acres primarily located in Eastern Ohio; and SCOOP covering an area of approximately 76,000 net reservoir acres primarily located in Oklahoma. As of December 31, 2020, it had 2.6 trillion cubic feet of natural gas equivalent of proved reserves; proved undeveloped reserves of 7 MMbbl of oil; and 923 Bcf of natural gas and 16 MMbbl of NGL. The company was incorporated in 1997 and is headquartered in Oklahoma City, Oklahoma. On November 13, 2020, Gulfport Energy Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.