Permianville Royalty Trust (NYSE:PVL – Get Free Report) and Dorchester Minerals (NASDAQ:DMLP – Get Free Report) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Dividends
Permianville Royalty Trust pays an annual dividend of $0.17 per share and has a dividend yield of 10.4%. Dorchester Minerals pays an annual dividend of $2.81 per share and has a dividend yield of 8.8%. Permianville Royalty Trust pays out 70.8% of its earnings in the form of a dividend. Dorchester Minerals pays out 106.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Permianville Royalty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Permianville Royalty Trust and Dorchester Minerals”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 | 1.19 | $10.60 million | $0.24 | 6.81 |
Dorchester Minerals | $163.80 million | 7.82 | $110.39 million | $2.64 | 12.11 |
Analyst Recommendations
This is a summary of current recommendations and price targets for Permianville Royalty Trust and Dorchester Minerals, 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 |
Dorchester Minerals | 0 | 0 | 0 | 0 | N/A |
Insider and Institutional Ownership
6.8% of Permianville Royalty Trust shares are owned by institutional investors. Comparatively, 19.2% of Dorchester Minerals shares are owned by institutional investors. 7.1% of Dorchester Minerals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Permianville Royalty Trust and Dorchester Minerals’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Permianville Royalty Trust | 15.44% | 14.80% | 14.74% |
Dorchester Minerals | 66.16% | 59.40% | 57.38% |
Volatility and Risk
Permianville Royalty Trust has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Dorchester Minerals has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
Summary
Dorchester Minerals beats Permianville Royalty Trust on 11 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 Dorchester Minerals
Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of royalty properties in the United States. Its royalty properties include producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests in 593 counties and parishes in 28 states; and net profits interests represent net profits overriding royalty interests in various properties owned by the operating partnership. Dorchester Minerals Management LP serves as the general partner of Dorchester Minerals, L.P. The company was founded in 1982 and is based in Dallas, Texas.
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