Analyzing Vermilion Energy (NYSE:VET) & Permianville Royalty Trust (NYSE:PVL)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vermilion Energy	0	1	3	0	2.75
Permianville Royalty Trust	0	0	0	0	N/A

Vermilion Energy currently has a consensus price target of $25.00, suggesting a potential upside of 100.96%. Given Vermilion Energy’s higher probable upside, equities analysts plainly believe Vermilion Energy is more favorable than Permianville Royalty Trust.

Volatility & Risk

Vermilion Energy has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500. Comparatively, Permianville Royalty Trust has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vermilion Energy	-11.40%	15.75%	8.19%
Permianville Royalty Trust	21.44%	17.10%	17.10%

Insider & Institutional Ownership

31.9% of Vermilion Energy shares are held by institutional investors. Comparatively, 6.8% of Permianville Royalty Trust shares are held by institutional investors. 2.6% of Vermilion Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Vermilion Energy and Permianville Royalty Trust’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vermilion Energy	$1.49 billion	1.35	-$176.01 million	($1.11)	-11.21
Permianville Royalty Trust	$45.21 million	0.99	$18.52 million	$0.42	3.24

Permianville Royalty Trust has lower revenue, but higher earnings than Vermilion Energy. Vermilion Energy 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.

Summary

Vermilion Energy beats Permianville Royalty Trust on 7 of the 13 factors compared between the two stocks.

About Vermilion Energy

Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas. The company has properties in West Central Alberta, southeast Saskatchewan, Manitoba, and West Pembina in Canada; Wyoming in the United States; southwest Bordeaux and Paris Basin in France; the Netherlands; Germany; Ireland; Croatia; Slovakia; and Australia. The company was founded in 1994 and is headquartered in Calgary, Canada.

About Permianville Royalty Trust

Permianville Royalty Trust operates as a statutory trust. It acquires and holds 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.