Contrasting PermRock Royalty Trust (NYSE:PRT) & Prairie Operating (NASDAQ:PROP)

PermRock Royalty Trust (NYSE:PRT) and Prairie Operating (NASDAQ:PROP) are both small-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares PermRock Royalty Trust and Prairie Operating”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PermRock Royalty Trust	$6.02 million	7.80	$5.16 million	$0.44	8.77
Prairie Operating	$7.94 million	13.55	-$40.91 million	($3.00)	-0.71

PermRock Royalty Trust has higher earnings, but lower revenue than Prairie Operating. Prairie Operating is trading at a lower price-to-earnings ratio than PermRock Royalty Trust, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

41.7% of PermRock Royalty Trust shares are owned by institutional investors. Comparatively, 34.3% of Prairie Operating shares are owned by institutional investors. 15.4% of Prairie Operating shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for PermRock Royalty Trust and Prairie Operating, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PermRock Royalty Trust	0	0	0	0	0.00
Prairie Operating	0	2	3	0	2.60

Prairie Operating has a consensus target price of $8.50, indicating a potential upside of 297.20%. Given Prairie Operating’s stronger consensus rating and higher possible upside, analysts plainly believe Prairie Operating is more favorable than PermRock Royalty Trust.

Volatility & Risk

PermRock Royalty Trust has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Prairie Operating has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500.

Profitability

This table compares PermRock Royalty Trust and Prairie Operating’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PermRock Royalty Trust	84.81%	7.46%	7.31%
Prairie Operating	N/A	21.04%	2.69%

Summary

Prairie Operating beats PermRock Royalty Trust on 8 of the 14 factors compared between the two stocks.

About PermRock Royalty Trust

PermRock Royalty Trust operates as a statutory trust. It owns interests in the oil and natural gas producing properties. The company's underlying properties include 22,394 net acres in the Permian Basin. The company was founded in 2017 and is based in Dallas, Texas.

About Prairie Operating

Prairie Operating Co., an independent energy company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company holds assets in the Denver-Julesburg Basin in Colorado; and the Niobrara and Codell formations. Prairie Operating Co. is based in Houston Texas.