Financial Contrast: Permianville Royalty Trust (NYSE:PVL) and EQT (NYSE:EQT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Permianville Royalty Trust	31.22%	24.89%	24.89%
EQT	10.96%	4.57%	2.66%

Institutional and Insider Ownership

6.8% of Permianville Royalty Trust shares are held by institutional investors. Comparatively, 90.8% of EQT shares are held by institutional investors. 0.6% of EQT shares are held 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 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, EQT has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Permianville Royalty Trust and EQT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permianville Royalty Trust	0	0	0	0	N/A
EQT	0	8	9	0	2.53

EQT has a consensus target price of $44.56, suggesting a potential upside of 8.58%. Given EQT’s higher possible upside, analysts clearly believe EQT is more favorable than Permianville Royalty Trust.

Valuation & Earnings

This table compares Permianville Royalty Trust and EQT’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	$45.21 million	1.08	$10.60 million	$0.43	3.45
EQT	$6.91 billion	2.62	$1.74 billion	$1.38	29.74

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

Summary

EQT beats Permianville Royalty Trust on 10 of the 13 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 EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.