PermRock Royalty Trust (NYSE:PRT – Get Free Report) and Extraction Oil & Gas (OTCMKTS:XOGAQ – Get Free Report) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Analyst Recommendations
This is a breakdown of current ratings for PermRock Royalty Trust and Extraction Oil & Gas, as provided by MarketBeat.
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 |
Institutional & Insider Ownership
Risk & Volatility
PermRock Royalty Trust has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Extraction Oil & Gas has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500.
Earnings & Valuation
This table compares PermRock Royalty Trust and Extraction Oil & Gas’ gross 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 | 6.65 | $6.26 million | $0.42 | 9.36 |
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.
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% |
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.
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