Permian Basin Royalty Trust (NYSE:PBT) and San Juan Basin Royalty Trust (NYSE:SJT) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Volatility & Risk

Permian Basin Royalty Trust has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, San Juan Basin Royalty Trust has a beta of -0.09, meaning that its stock price is 109% less volatile than the S&P 500.

Earnings and Valuation

This table compares Permian Basin Royalty Trust and San Juan 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
Permian Basin Royalty Trust $30.56 million 10.86 $29.32 million N/A N/A
San Juan Basin Royalty Trust $40.73 million 6.24 $39.13 million N/A N/A

San Juan Basin Royalty Trust has higher revenue and earnings than Permian Basin Royalty Trust.

Insider & Institutional Ownership

11.2% of Permian Basin Royalty Trust shares are owned by institutional investors. Comparatively, 24.7% of San Juan Basin Royalty Trust shares are owned by institutional investors. 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 recent ratings for Permian Basin Royalty Trust and San Juan Basin Royalty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Permian Basin Royalty Trust 0 0 0 0 N/A
San Juan Basin Royalty Trust 0 0 0 0 N/A

Dividends

Permian Basin Royalty Trust pays an annual dividend of $0.66 per share and has a dividend yield of 9.3%. San Juan Basin Royalty Trust pays an annual dividend of $0.91 per share and has a dividend yield of 16.7%. San Juan Basin Royalty Trust has increased its dividend for 4 consecutive years. San Juan Basin Royalty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Permian Basin Royalty Trust and San Juan Basin Royalty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Permian Basin Royalty Trust 95.78% 6,165.43% 736.89%
San Juan Basin Royalty Trust 95.60% 520.42% 300.56%

Summary

Permian Basin Royalty Trust beats San Juan Basin Royalty Trust on 6 of the 11 factors compared between the two stocks.

About Permian Basin Royalty Trust

Permian Basin Royalty Trust, an express trust, holds overriding royalty interests in various oil and gas properties in the United States. The company owns a 75% net overriding royalty interest in the Waddell Ranch properties comprising Dune, Judkins, McKnight, Tubb, University-Waddell, and Waddell fields located in Crane County, Texas. As of December 31, 2017, its Waddell Ranch properties contained 348 net productive oil wells, 65 net productive gas wells, and 102 net injection wells. The company also holds a 95% net overriding royalty in the Texas Royalty properties, which include various producing oil fields, such as Yates, Wasson, Sand Hills, East Texas, Kelly-Snyder, Panhandle Regular, N. Cowden, Todd, Keystone, Kermit, McElroy, Howard-Glasscock, Seminole, and others located in 33 counties in Texas. Its Texas Royalty properties comprise approximately 125 separate royalty interests containing approximately 51,000 net producing acres. Permian Basin Royalty Trust was founded in 1980 and is based in Dallas, Texas.

About San Juan Basin Royalty Trust

San Juan Basin Royalty Trust operates as an express trust in Texas. The company has a 75% net overriding royalty interest carved out of Southland's oil and natural gas interests (the subject interests) in properties located in the San Juan Basin in northwestern New Mexico. The subject interests consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico, as well as 829.8 net wells. Compass Bank serves as the trustee of the San Juan Basin Royalty Trust. The company was founded in 1980 and is based in Fort Worth, Texas.

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