Freehold Royalties (OTCMKTS:FRHLF) versus Permian Basin Royalty Trust (NYSE:PBT) Head to Head Review

Permian Basin Royalty Trust (NYSE:PBT) and Freehold Royalties (OTCMKTS:FRHLF) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Analyst Ratings

This is a summary of current recommendations for Permian Basin Royalty Trust and Freehold Royalties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permian Basin Royalty Trust	0	1	0	0	2.00
Freehold Royalties	0	5	0	0	2.00

Dividends

Permian Basin Royalty Trust pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Freehold Royalties pays an annual dividend of $0.75 per share and has a dividend yield of 6.0%. Permian Basin Royalty Trust pays out 68.6% of its earnings in the form of a dividend. Freehold Royalties pays out 123.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Permian Basin Royalty Trust and Freehold Royalties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Permian Basin Royalty Trust	91.96%	9,990.08%	510.19%
Freehold Royalties	43.59%	13.90%	10.09%

Valuation & Earnings

This table compares Permian Basin Royalty Trust and Freehold Royalties”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	$16.13 million	98.05	$14.30 million	$0.35	96.94
Freehold Royalties	$224.34 million	9.19	$65.69 million	$0.61	20.62

Freehold Royalties has higher revenue and earnings than Permian Basin Royalty Trust. Freehold Royalties 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.

Insider & Institutional Ownership

28.9% of Permian Basin Royalty Trust shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Permian Basin Royalty Trust beats Freehold Royalties on 7 of the 11 factors compared between the two stocks.

About Permian Basin Royalty Trust

Permian Basin Royalty Trust, an express trust, holds royalty interests in various oil and gas properties in the United States. The company holds a 75% net overriding royalty interest in the Waddell Ranch properties, including Dune, Sand Hills (Judkins), Sand Hills (McKnight), Sand Hills (Tubb), University-Waddell (Devonian) and Waddell fields in Crane County, Texas. It also holds a 95% net overriding royalty in the Texas Royalty properties, which consist of 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 Texas. Its Texas Royalty properties comprise approximately 125 separate royalty interests containing approximately 51,000 net producing acres. The company was founded in 1980 and is based in Dallas, Texas.

About Freehold Royalties

Freehold Royalties Ltd. engages in the acquiring and managing royalty interests in the crude oil, natural gas, natural gas liquids, and potash properties in Western Canada and the United States. Freehold Royalties Ltd. was founded in 1996 and is headquartered in Calgary, Canada.