Head-To-Head Review: Transportadora De Gas Sa Ord B (NYSE:TGS) and Permian Basin Royalty Trust (NYSE:PBT)

Transportadora De Gas Sa Ord B (NYSE:TGS) and Permian Basin Royalty Trust (NYSE:PBT) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Volatility & Risk

Transportadora De Gas Sa Ord B has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Permian Basin Royalty Trust has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Insider & Institutional Ownership

3.3% of Transportadora De Gas Sa Ord B shares are held by institutional investors. Comparatively, 28.9% of Permian Basin 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 is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Transportadora De Gas Sa Ord B and Permian Basin Royalty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transportadora De Gas Sa Ord B	0	1	1	1	3.00
Permian Basin Royalty Trust	0	1	0	0	2.00

Dividends

Transportadora De Gas Sa Ord B pays an annual dividend of $0.92 per share and has a dividend yield of 4.3%. Permian Basin Royalty Trust pays an annual dividend of $0.54 per share and has a dividend yield of 1.7%. Transportadora De Gas Sa Ord B pays out 36.2% of its earnings in the form of a dividend. Permian Basin Royalty Trust pays out 192.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Transportadora De Gas Sa Ord B is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Transportadora De Gas Sa Ord B and Permian Basin Royalty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transportadora De Gas Sa Ord B	$1,813.26 billion	0.00	$336.69 million	$2.54	8.46
Permian Basin Royalty Trust	$16.13 million	89.76	$14.30 million	$0.28	110.94

Transportadora De Gas Sa Ord B has higher revenue and earnings than Permian Basin Royalty Trust. Transportadora De Gas Sa Ord B is trading at a lower price-to-earnings ratio than Permian Basin Royalty Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Transportadora De Gas Sa Ord B and Permian Basin Royalty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transportadora De Gas Sa Ord B	26.02%	14.29%	8.35%
Permian Basin Royalty Trust	85.87%	8,126.17%	593.15%

Summary

Transportadora De Gas Sa Ord B beats Permian Basin Royalty Trust on 9 of the 15 factors compared between the two stocks.

About Transportadora De Gas Sa Ord B

Transportadora de Gas del Sur S.A. (TGS) is an Argentine energy infrastructure company that transports natural gas and provides related processing and midstream services. Its pipeline network carries gas from producing regions in southern and central Argentina to consumers and distribution systems, including markets around Buenos Aires. TGS also processes natural gas and produces natural gas liquids, including ethane, propane, butane and gasoline, for domestic and export markets. Its services include gas treatment, gathering and other infrastructure work for energy producers, including in the Vaca Muerta region.

About Permian Basin Royalty Trust

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.