Contrasting Permian Basin Royalty Trust (PBT) and Its Peers

Permian Basin Royalty Trust (NYSE:PBT) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its competitors? We will compare Permian Basin Royalty Trust to related companies based on the strength of its risk, institutional ownership, dividends, valuation, profitability, analyst recommendations and earnings.

Volatility & Risk

Permian Basin Royalty Trust has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Permian Basin Royalty Trust’s competitors have a beta of -3.79, meaning that their average stock price is 479% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Permian Basin Royalty Trust and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permian Basin Royalty Trust	0	1	0	0	2.00
Permian Basin Royalty Trust Competitors	5994	27031	40907	2431	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 27.37%. Given Permian Basin Royalty Trust’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Permian Basin Royalty Trust has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Permian Basin Royalty Trust and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Permian Basin Royalty Trust	$16.13 million	$14.30 million	87.83
Permian Basin Royalty Trust Competitors	$14.85 billion	$5.51 billion	-1.09

Permian Basin Royalty Trust’s competitors have higher revenue and earnings than Permian Basin Royalty Trust. Permian Basin Royalty Trust is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Permian Basin Royalty Trust pays an annual dividend of $0.54 per share and has a dividend yield of 1.8%. Permian Basin Royalty Trust pays out 154.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.1% and pay out -135.5% of their earnings in the form of a dividend. Permian Basin Royalty Trust lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Permian Basin Royalty Trust and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Permian Basin Royalty Trust	85.87%	8,115.81%	652.62%
Permian Basin Royalty Trust Competitors	-455.74%	19.71%	6.77%

Institutional and Insider Ownership

28.9% of Permian Basin Royalty Trust shares are owned by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Permian Basin Royalty Trust competitors beat Permian Basin Royalty Trust on 10 of the 15 factors compared.

Permian Basin Royalty Trust Company Profile

Permian Basin Royalty Trust is a Texas-based express trust that owns royalty and net profits interests in oil and natural gas properties. It does not operate wells; instead, it receives proceeds from production after applicable costs and distributes available amounts to its unitholders. The trust’s interests include properties in the Permian Basin of West Texas, including the Waddell Ranch properties and other Texas royalty interests. Production and operating activities are carried out by the operators of those properties.