Permianville Royalty Trust (NYSE:PVL) versus SilverBow Resources (NYSE:SBOW) Critical Analysis

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

Risk & Volatility

SilverBow Resources has a beta of 2.58, meaning that its share price is 158% more volatile than the S&P 500. Comparatively, Permianville Royalty Trust has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Institutional and Insider Ownership

91.8% of SilverBow Resources shares are held by institutional investors. Comparatively, 6.8% of Permianville Royalty Trust shares are held by institutional investors. 4.0% of SilverBow Resources 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SilverBow Resources	24.41%	16.48%	7.66%
Permianville Royalty Trust	22.92%	17.89%	17.86%

Earnings & Valuation

This table compares SilverBow Resources 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
SilverBow Resources	$652.36 million	1.48	$297.72 million	$7.40	5.10
Permianville Royalty Trust	$45.21 million	1.10	$10.60 million	$0.30	5.03

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SilverBow Resources and Permianville Royalty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverBow Resources	0	4	3	0	2.43
Permianville Royalty Trust	0	0	0	0	N/A

SilverBow Resources currently has a consensus price target of $45.33, suggesting a potential upside of 20.15%. Given SilverBow Resources’ higher probable upside, research analysts plainly believe SilverBow Resources is more favorable than Permianville Royalty Trust.

Summary

SilverBow Resources beats Permianville Royalty Trust on 11 of the 13 factors compared between the two stocks.

About SilverBow Resources

SilverBow Resources, Inc., an independent oil and gas company, exploration, develops, acquires, and operates oil and natural gas properties in the Eagle Ford shale and Austin Chalk located in South Texas. The company was formerly known as Swift Energy Company and changed its name to SilverBow Resources, Inc. in May 2017. SilverBow Resources, Inc. was founded in 1979 and is headquartered in Houston, Texas.

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.