Advantage Energy (OTCMKTS:AAVVF) vs. Permianville Royalty Trust (NYSE:PVL) Critical Analysis

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

Analyst Recommendations

This is a summary of recent ratings for Advantage Energy and Permianville Royalty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Energy	0	5	2	1	2.50
Permianville Royalty Trust	0	1	0	0	2.00

Insider & Institutional Ownership

7.8% of Advantage Energy shares are owned by institutional investors. Comparatively, 6.8% of Permianville Royalty Trust shares are owned 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.

Valuation & Earnings

This table compares Advantage Energy and Permianville Royalty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Energy	$500.25 million	2.31	$37.97 million	$0.35	19.73
Permianville Royalty Trust	$47.08 million	1.28	$4.72 million	$0.17	10.74

Advantage Energy has higher revenue and earnings than Permianville Royalty Trust. Permianville Royalty Trust is trading at a lower price-to-earnings ratio than Advantage Energy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Advantage Energy has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Permianville Royalty Trust has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Advantage Energy	11.58%	4.92%	2.67%
Permianville Royalty Trust	11.30%	15.04%	15.03%

Summary

Advantage Energy beats Permianville Royalty Trust on 11 of the 13 factors compared between the two stocks.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.

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.