Comparing Dorchester Minerals (NASDAQ:DMLP) and Permianville Royalty Trust (NYSE:PVL)

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

Risk and Volatility

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

Dividends

Dorchester Minerals pays an annual dividend of $2.80 per share and has a dividend yield of 8.8%. Permianville Royalty Trust pays an annual dividend of $0.16 per share and has a dividend yield of 9.8%. 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 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.

Insider and Institutional Ownership

19.2% of Dorchester Minerals shares are owned by institutional investors. Comparatively, 6.8% of Permianville Royalty Trust shares are owned by institutional investors. 7.1% of Dorchester Minerals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Dorchester Minerals and Permianville Royalty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dorchester Minerals	66.16%	59.40%	57.38%
Permianville Royalty Trust	15.44%	14.80%	14.74%

Analyst Ratings

This is a summary of recent recommendations and price targets for Dorchester Minerals and Permianville Royalty Trust, as reported by MarketBeat.com.

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dorchester Minerals	$161.35 million	7.94	$110.39 million	$2.57	12.44
Permianville Royalty Trust	$3.26 million	16.48	$10.60 million	$0.30	5.43

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.

Summary

Dorchester Minerals beats Permianville Royalty Trust on 10 of the 13 factors compared between the two stocks.

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.

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.