Contrasting DHT (NYSE:DHT) & Permianville Royalty Trust (NYSE:PVL)

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

Analyst Ratings

This is a breakdown of recent ratings for Permianville Royalty Trust and DHT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permianville Royalty Trust	0	1	0	0	2.00
DHT	0	2	3	0	2.60

DHT has a consensus target price of $19.33, indicating a potential downside of 3.76%. Given DHT’s stronger consensus rating and higher probable upside, analysts clearly believe DHT is more favorable than Permianville Royalty Trust.

Insider and Institutional Ownership

6.8% of Permianville Royalty Trust shares are owned by institutional investors. Comparatively, 58.5% of DHT shares are owned by institutional investors. 1.6% of DHT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Permianville Royalty Trust has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, DHT has a beta of -0.09, meaning that its stock price is 109% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permianville Royalty Trust	$47.08 million	1.30	$4.72 million	$0.17	10.87
DHT	$498.40 million	6.49	$211.09 million	$2.94	6.83

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Permianville Royalty Trust	11.30%	15.04%	15.03%
DHT	65.52%	39.40%	28.63%

Dividends

Permianville Royalty Trust pays an annual dividend of $0.32 per share and has a dividend yield of 17.3%. DHT pays an annual dividend of $4.88 per share and has a dividend yield of 24.3%. Permianville Royalty Trust pays out 188.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DHT pays out 166.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DHT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

DHT beats Permianville Royalty Trust on 14 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 DHT

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.