Permianville Royalty Trust (NYSE:PVL) & PermRock Royalty Trust (NYSE:PRT) Financial Analysis

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

Profitability

This table compares PermRock Royalty Trust and Permianville Royalty Trust’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%
Permianville Royalty Trust	15.44%	14.80%	14.74%

Dividends

PermRock Royalty Trust pays an annual dividend of $0.36 per share and has a dividend yield of 8.9%. Permianville Royalty Trust pays an annual dividend of $0.16 per share and has a dividend yield of 10.0%. 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. Permianville Royalty Trust pays out 53.3% of its earnings in the form of a dividend. Permianville Royalty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

41.7% of PermRock Royalty Trust shares are held by institutional investors. Comparatively, 6.8% of Permianville 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.

Volatility & 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, Permianville Royalty Trust has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Valuation and Earnings

This table compares PermRock Royalty Trust and Permianville Royalty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PermRock Royalty Trust	$6.20 million	7.91	$6.26 million	$0.42	9.60
Permianville Royalty Trust	$3.26 million	16.18	$10.60 million	$0.30	5.33

Permianville Royalty Trust has lower revenue, but higher 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for PermRock Royalty Trust and Permianville Royalty Trust, as reported by MarketBeat.

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

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 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.