PermRock Royalty Trust (NYSE:PRT – Get Free Report) and Vermilion Energy (NYSE:VET – Get Free Report) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.
Valuation and Earnings
This table compares PermRock Royalty Trust and Vermilion Energy”s top-line 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 | 7.67 | $6.26 million | $0.42 | 9.31 |
Vermilion Energy | $1.49 billion | 1.06 | -$176.01 million | ($2.78) | -3.63 |
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.
Analyst Recommendations
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% |
Volatility & Risk
PermRock Royalty Trust has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Vermilion Energy has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500.
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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
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 $0.36 per share and has a dividend yield of 3.6%. 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 -12.9% of its earnings in the form of a dividend.
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.
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