Head to Head Contrast: Permianville Royalty Trust (NYSE:PVL) versus Dorchester Minerals (NASDAQ:DMLP)

Permianville Royalty Trust (NYSE:PVL) and Dorchester Minerals (NASDAQ:DMLP) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

6.8% of Permianville Royalty Trust shares are held by institutional investors. Comparatively, 19.2% of Dorchester Minerals shares are held by institutional investors. 7.1% of Dorchester Minerals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Permianville Royalty Trust and Dorchester Minerals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permianville Royalty Trust	$3.26 million	16.18	$10.60 million	$0.30	5.33
Dorchester Minerals	$161.35 million	7.78	$110.39 million	$2.57	12.18

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

Dividends

Permianville Royalty Trust pays an annual dividend of $0.16 per share and has a dividend yield of 10.0%. Dorchester Minerals pays an annual dividend of $2.80 per share and has a dividend yield of 8.9%. Permianville Royalty Trust pays out 53.3% of its earnings in the form of a dividend. Dorchester Minerals pays out 108.9% 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.

Risk and Volatility

Permianville Royalty Trust has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Dorchester Minerals has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Permianville Royalty Trust and Dorchester Minerals, as reported by MarketBeat.

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

Profitability

This table compares Permianville Royalty Trust and Dorchester Minerals’ 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%
Dorchester Minerals	66.16%	59.40%	57.38%

Summary

Dorchester Minerals beats Permianville Royalty Trust on 10 of the 13 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 Dorchester Minerals

Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of royalty properties in the United States. Its royalty properties include producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests in 593 counties and parishes in 28 states; and net profits interests represent net profits overriding royalty interests in various properties owned by the operating partnership. Dorchester Minerals Management LP serves as the general partner of Dorchester Minerals, L.P. The company was founded in 1982 and is based in Dallas, Texas.