Cross Timbers Royalty Trust (NYSE:CRT) and Permianville Royalty Trust (NYSE:PVL) Critical Survey

Institutional and Insider Ownership

9.7% of Cross Timbers Royalty Trust shares are held by institutional investors. Comparatively, 6.8% of Permianville Royalty Trust shares are held by institutional investors. 9.4% of Cross Timbers Royalty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cross Timbers Royalty Trust	87.50%	243.41%	150.00%
Permianville Royalty Trust	4.64%	6.28%	6.25%

Valuation & Earnings

This table compares Cross Timbers Royalty Trust and Permianville Royalty Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cross Timbers Royalty Trust	$6.62 million	8.85	$6.54 million	$0.99	9.87
Permianville Royalty Trust	$61.63 million	1.00	$5.14 million	$0.09	20.78

Cross Timbers Royalty Trust has higher earnings, but lower revenue than Permianville Royalty Trust. Cross Timbers 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.

Volatility & Risk

Cross Timbers Royalty Trust has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Permianville Royalty Trust has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Summary

Cross Timbers Royalty Trust beats Permianville Royalty Trust on 8 of the 11 factors compared between the two stocks.

About Cross Timbers Royalty Trust

Cross Timbers Royalty Trust operates as an express trust in the United States. It holds 90% net profits interests in certain producing and nonproducing royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico; and 75% net profits working interest in four properties in Texas and three properties in Oklahoma. The company was founded in 1991 and is based in Dallas, 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.