Critical Analysis: Pacific Coast Oil Trust (NYSE:ROYT) versus PermRock Royalty Trust (NYSE:PRT)

Pacific Coast Oil Trust (NYSE:ROYT) and PermRock Royalty Trust (NYSE:PRT) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Pacific Coast Oil Trust and PermRock Royalty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pacific Coast Oil Trust 0 0 0 0 N/A
PermRock Royalty Trust 0 1 0 0 2.00

PermRock Royalty Trust has a consensus price target of $3.00, suggesting a potential upside of 57.07%. Given PermRock Royalty Trust’s higher possible upside, analysts plainly believe PermRock Royalty Trust is more favorable than Pacific Coast Oil Trust.

Volatility & Risk

Pacific Coast Oil Trust has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500. Comparatively, PermRock Royalty Trust has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Earnings and Valuation

This table compares Pacific Coast Oil Trust and PermRock Royalty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pacific Coast Oil Trust $54.18 million 0.08 $12.62 million N/A N/A
PermRock Royalty Trust $10.44 million 2.23 $8.84 million N/A N/A

Pacific Coast Oil Trust has higher revenue and earnings than PermRock Royalty Trust.

Profitability

This table compares Pacific Coast Oil Trust and PermRock Royalty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pacific Coast Oil Trust N/A N/A N/A
PermRock Royalty Trust 30.21% 7.42% 7.33%

Institutional & Insider Ownership

6.1% of Pacific Coast Oil Trust shares are held by institutional investors. Comparatively, 51.5% of PermRock Royalty Trust shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

PermRock Royalty Trust beats Pacific Coast Oil Trust on 6 of the 9 factors compared between the two stocks.

About Pacific Coast Oil Trust

Pacific Coast Oil Trust acquires and holds net profits and royalty interests in various oil and natural gas properties located in California. Its properties include Orcutt properties located in the Santa Maria Basin; and West Pico, East Coyote, and Sawtelle properties located in the Los Angeles Basin of California. As of December 31, 2018, the company had proved reserves of 19.0 million barrels of oil equivalent. Pacific Coast Oil Trust was founded in 2012 and is based in Houston, Texas.

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.

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