Extraction Oil & Gas (OTCMKTS:XOGAQ) versus PermRock Royalty Trust (NYSE:PRT) Head-To-Head Comparison

PermRock Royalty Trust (NYSE:PRT) and Extraction Oil & Gas (OTCMKTS:XOGAQ) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Risk & Volatility

PermRock Royalty Trust has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Extraction Oil & Gas has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for PermRock Royalty Trust and Extraction Oil & Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PermRock Royalty Trust	0	0	0	0	N/A
Extraction Oil & Gas	0	0	0	0	N/A

Profitability

This table compares PermRock Royalty Trust and Extraction Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PermRock Royalty Trust	84.70%	6.74%	6.62%
Extraction Oil & Gas	-223.86%	-56.20%	-11.52%

Insider and Institutional Ownership

41.7% of PermRock Royalty Trust shares are owned by institutional investors. Comparatively, 38.6% of Extraction Oil & Gas shares are owned by institutional investors. 6.0% of Extraction Oil & Gas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares PermRock Royalty Trust and Extraction Oil & Gas’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PermRock Royalty Trust	$7.19 million	6.67	$6.26 million	$0.42	9.38
Extraction Oil & Gas	$906.64 million	0.01	-$1.39 billion	($0.46)	-0.13

PermRock Royalty Trust has higher earnings, but lower revenue than Extraction Oil & Gas. Extraction Oil & Gas 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.

Summary

PermRock Royalty Trust beats Extraction Oil & Gas on 8 of the 11 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 Extraction Oil & Gas

Extraction Oil & Gas, Inc., an independent oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquid reserves in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg (DJ) Basin of Colorado. The company also engages in the construction and support of midstream assets to gather, process, and produce crude oil and gas. As of December 31, 2019, it had approximately 169,900 net acres of contiguous acreage blocks in the productive areas of the DJ Basin; held approximately 125,500 net acres outside of the Core DJ Basin; had estimated proved reserves of approximately 254.1 MMBoe; and had 1,509 gross producing wells. The company was founded in 2012 and is headquartered in Denver, Colorado. On June 14, 2020, Extraction Oil & Gas, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.