Reviewing Permianville Royalty Trust (NYSE:PVL) & Diversified Energy (NYSE:DEC)

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

Institutional & Insider Ownership

6.8% of Permianville Royalty Trust shares are owned by institutional investors. Comparatively, 26.5% of Diversified Energy shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Permianville Royalty Trust and Diversified Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permianville Royalty Trust	0	0	0	0	N/A
Diversified Energy	0	0	1	0	3.00

Diversified Energy has a consensus target price of $18.00, indicating a potential upside of 33.04%. Given Diversified Energy’s higher probable upside, analysts clearly believe Diversified Energy is more favorable than Permianville Royalty Trust.

Dividends

Permianville Royalty Trust pays an annual dividend of $0.07 per share and has a dividend yield of 6.3%. Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 8.6%. Permianville Royalty Trust pays out 23.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Permianville Royalty Trust and Diversified Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permianville Royalty Trust	$5.55 million	6.60	$10.60 million	$0.30	3.70
Diversified Energy	$868.26 million	0.75	$758.02 million	N/A	N/A

Diversified Energy has higher revenue and earnings than Permianville Royalty Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Permianville Royalty Trust	23.42%	18.28%	18.25%
Diversified Energy	N/A	N/A	N/A

Summary

Diversified Energy beats Permianville Royalty Trust on 7 of the 11 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 Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.