Vermilion Energy (NYSE:VET) and PermRock Royalty Trust (NYSE:PRT) Head to Head Review

PermRock Royalty Trust (NYSE:PRT) and Vermilion Energy (NYSE:VET) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Volatility and Risk

PermRock Royalty Trust has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Vermilion Energy has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500.

Dividends

PermRock Royalty Trust pays an annual dividend of $0.36 per share and has a dividend yield of 9.2%. Vermilion Energy pays an annual dividend of $0.35 per share and has a dividend yield of 3.4%. PermRock Royalty Trust pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vermilion Energy pays out -12.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for PermRock Royalty Trust and Vermilion Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PermRock Royalty Trust	0	0	0	0	N/A
Vermilion Energy	0	1	2	0	2.67

Profitability

This table compares PermRock Royalty Trust and Vermilion Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PermRock Royalty Trust	85.38%	6.99%	6.86%
Vermilion Energy	-41.33%	5.99%	2.94%

Institutional and Insider Ownership

41.7% of PermRock Royalty Trust shares are owned by institutional investors. Comparatively, 31.9% of Vermilion Energy shares are owned by institutional investors. 2.6% of Vermilion Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares PermRock Royalty Trust and Vermilion Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PermRock Royalty Trust	$6.20 million	7.65	$6.26 million	$0.42	9.29
Vermilion Energy	$2.14 billion	0.76	-$176.01 million	($2.78)	-3.71

PermRock Royalty Trust has higher earnings, but lower revenue than Vermilion Energy. Vermilion Energy 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.

Summary

PermRock Royalty Trust beats Vermilion Energy on 9 of the 14 factors compared between the two stocks.

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.

About Vermilion Energy

Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas. The company has properties in West Central Alberta, southeast Saskatchewan, Manitoba, and West Pembina in Canada; Wyoming in the United States; southwest Bordeaux and Paris Basin in France; the Netherlands; Germany; Ireland; Croatia; Slovakia; and Australia. The company was founded in 1994 and is headquartered in Calgary, Canada.