Permianville Royalty Trust (NYSE:PVL) and Viper Energy (NASDAQ:VNOM) Head to Head Comparison

Permianville Royalty Trust (NYSE:PVL) and Viper Energy (NASDAQ:VNOM) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for Permianville Royalty Trust and Viper Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permianville Royalty Trust	0	0	0	0	0.00
Viper Energy	0	0	11	0	3.00

Viper Energy has a consensus price target of $60.00, suggesting a potential upside of 17.76%. Given Viper Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Viper Energy is more favorable than Permianville Royalty Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Permianville Royalty Trust	12.60%	13.73%	13.67%
Viper Energy	24.65%	6.72%	4.98%

Insider & Institutional Ownership

6.8% of Permianville Royalty Trust shares are held by institutional investors. Comparatively, 87.7% of Viper Energy shares are held by institutional investors. 0.3% of Viper Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Permianville Royalty Trust pays an annual dividend of $0.13 per share and has a dividend yield of 8.3%. Viper Energy pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. Permianville Royalty Trust pays out 61.9% of its earnings in the form of a dividend. Viper Energy pays out 51.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Permianville Royalty Trust and Viper Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permianville Royalty Trust	$45.21 million	1.14	$10.60 million	$0.21	7.43
Viper Energy	$827.70 million	11.60	$200.09 million	$2.33	21.87

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

Risk & Volatility

Permianville Royalty Trust has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Viper Energy has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Summary

Viper Energy beats Permianville Royalty Trust on 13 of the 16 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 Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.