Comparing Permianville Royalty Trust (NYSE:PVL) & Viper Energy (NASDAQ:VNOM)

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

Institutional & Insider Ownership

87.7% of Viper Energy shares are owned by institutional investors. Comparatively, 6.8% of Permianville Royalty Trust shares are owned by institutional investors. 0.3% of Viper Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

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

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

Viper Energy currently has a consensus price target of $60.00, suggesting a potential upside of 16.80%. Given Viper Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Viper Energy is more favorable than Permianville Royalty Trust.

Risk and Volatility

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

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viper Energy	$835.80 million	11.58	$200.09 million	$2.33	22.05
Permianville Royalty Trust	$45.21 million	1.15	$10.60 million	$0.21	7.50

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.

Dividends

Viper Energy pays an annual dividend of $1.20 per share and has a dividend yield of 2.3%. Permianville Royalty Trust pays an annual dividend of $0.13 per share and has a dividend yield of 8.3%. Viper Energy pays out 51.5% of its earnings in the form of a dividend. Permianville Royalty Trust pays out 61.9% 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.

Summary

Viper Energy beats Permianville Royalty Trust on 13 of the 16 factors compared between the two stocks.

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.

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.