PermRock Royalty Trust (NYSE:PRT) and Montage Resources (NYSE:MR) 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 profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.
This table compares PermRock Royalty Trust and Montage Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PermRock Royalty Trust||N/A||12.03%||11.91%|
This table compares PermRock Royalty Trust and Montage Resources’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PermRock Royalty Trust||$16.24 million||4.15||$15.59 million||$1.28||4.33|
|Montage Resources||$515.15 million||0.35||$18.83 million||N/A||N/A|
Montage Resources has higher revenue and earnings than PermRock Royalty Trust.
Institutional & Insider Ownership
52.9% of PermRock Royalty Trust shares are held by institutional investors. Comparatively, 78.3% of Montage Resources shares are held by institutional investors. 1.0% of Montage Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for PermRock Royalty Trust and Montage Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PermRock Royalty Trust||0||1||0||0||2.00|
PermRock Royalty Trust presently has a consensus target price of $10.00, indicating a potential upside of 80.51%. Montage Resources has a consensus target price of $11.33, indicating a potential upside of 126.67%. Given Montage Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Montage Resources is more favorable than PermRock Royalty Trust.
Risk and Volatility
PermRock Royalty Trust has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Montage Resources has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.
PermRock Royalty Trust pays an annual dividend of $0.45 per share and has a dividend yield of 8.1%. Montage Resources does not pay a dividend. PermRock Royalty Trust pays out 35.2% of its earnings in the form of a dividend.
Montage Resources beats PermRock Royalty Trust on 10 of the 14 factors compared between the two stocks.
About PermRock Royalty Trust
PermRock Royalty Trust owns 80% net profits interest in the oil and natural gas production properties acquired by Boaz Energy II, LLC in the Permian Basin, Texas. The company was founded in 2017 and is based in Fort Worth, Texas.
About Montage Resources
Montage Resources Corporation operates as an oil and natural gas exploration and production company. As of December 31, 2018, it had an acreage position comprising approximately 241,000 net acres in Ohio and Pennsylvania; and had estimated proved reserves of 1,864.7 billion cubic feet of natural gas equivalent. The company was formerly known as Eclipse Resources Corporation and changed its name to Montage Resources Corporation in February 2019. Montage Resources Corporation was founded in 2011 and is based in Irving, Texas.
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