Mesa Royalty Trust (NYSE:MTR) vs. Permianville Royalty Trust (NYSE:PVL) Head to Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mesa Royalty Trust	76.84%	13.63%	13.24%
Permianville Royalty Trust	4.44%	5.04%	5.00%

Insider and Institutional Ownership

12.7% of Mesa Royalty Trust shares are held by institutional investors. Comparatively, 6.8% of Permianville Royalty Trust shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Mesa Royalty Trust pays an annual dividend of $0.22 per share and has a dividend yield of 5.2%. Permianville Royalty Trust pays an annual dividend of $0.28 per share and has a dividend yield of 15.9%. Mesa Royalty Trust pays out 95.7% 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 pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mesa Royalty Trust has increased its dividend for 1 consecutive years.

Risk and Volatility

Mesa Royalty Trust has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Permianville Royalty Trust has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Mesa Royalty Trust and Permianville Royalty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mesa Royalty Trust	1	0	0	0	1.00
Permianville Royalty Trust	0	1	0	0	2.00

Valuation and Earnings

This table compares Mesa Royalty Trust 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
Mesa Royalty Trust	$650,000.00	12.02	$460,000.00	$0.23	18.26
Permianville Royalty Trust	$61.63 million	0.95	$5.14 million	$0.07	25.23

Permianville Royalty Trust has higher revenue and earnings than Mesa Royalty Trust. Mesa Royalty Trust 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

Mesa Royalty Trust beats Permianville Royalty Trust on 9 of the 14 factors compared between the two stocks.

About Mesa Royalty Trust

Mesa Royalty Trust owns overriding royalty interests in various oil and gas producing properties in the United States. It holds interests in properties located in the Hugoton field of Kansas; and the San Juan Basin field of Northwestern New Mexico and Southwestern Colorado. The company was founded in 1979 and is based 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.