Permianville Royalty Trust (NYSE:PVL) and Amplify Energy (NYSE:AMPY) Critical Comparison

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

Insider and Institutional Ownership

6.8% of Permianville Royalty Trust shares are held by institutional investors. Comparatively, 42.8% of Amplify Energy shares are held by institutional investors. 9.0% of Amplify Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Permianville Royalty Trust	11.30%	15.04%	15.03%
Amplify Energy	10.62%	-3.01%	-2.07%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Permianville Royalty Trust and Amplify Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permianville Royalty Trust	0	1	0	0	2.00
Amplify Energy	1	0	1	0	2.00

Amplify Energy has a consensus target price of $9.00, indicating a potential upside of 114.03%. Given Amplify Energy’s higher probable upside, analysts clearly believe Amplify Energy is more favorable than Permianville Royalty Trust.

Volatility and Risk

Permianville Royalty Trust has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Amplify Energy has a beta of -0.15, meaning that its stock price is 115% less volatile than the S&P 500.

Earnings and Valuation

This table compares Permianville Royalty Trust and Amplify Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permianville Royalty Trust	$7.81 million	7.65	$4.72 million	$0.17	10.65
Amplify Energy	$213.10 million	0.82	$43.97 million	$0.45	9.34

Amplify Energy has higher revenue and earnings than Permianville Royalty Trust. Amplify Energy 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.

Dividends

Permianville Royalty Trust pays an annual dividend of $0.19 per share and has a dividend yield of 10.5%. Amplify Energy pays an annual dividend of $0.40 per share and has a dividend yield of 9.5%. Permianville Royalty Trust pays out 111.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Amplify Energy pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Amplify Energy beats Permianville Royalty Trust on 8 of the 15 factors compared between the two stocks.

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.

About Amplify Energy

Amplify Energy Corp., together with its subsidiaries, engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. The company’s properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, as well as working interests in identified producing wells located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. The company is based in Houston, Texas.