Occidental Petroleum (OXY) and PermRock Royalty Trust (PRT) Critical Analysis
Occidental Petroleum (NYSE: PRT) and PermRock Royalty Trust (NYSE:PRT) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.
Occidental Petroleum pays an annual dividend of $3.12 per share and has a dividend yield of 3.9%. PermRock Royalty Trust pays an annual dividend of $1.11 per share and has a dividend yield of 8.5%. Occidental Petroleum pays out 350.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Occidental Petroleum has raised its dividend for 15 consecutive years.
80.0% of Occidental Petroleum shares are held by institutional investors. Comparatively, 59.0% of PermRock Royalty Trust shares are held by institutional investors. 0.1% of Occidental Petroleum shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Occidental Petroleum and PermRock Royalty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PermRock Royalty Trust||N/A||N/A||N/A|
This is a breakdown of current ratings and price targets for Occidental Petroleum and PermRock Royalty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PermRock Royalty Trust||0||1||3||0||2.75|
Occidental Petroleum presently has a consensus price target of $82.86, indicating a potential upside of 4.09%. PermRock Royalty Trust has a consensus price target of $18.00, indicating a potential upside of 38.36%. Given PermRock Royalty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe PermRock Royalty Trust is more favorable than Occidental Petroleum.
Earnings and Valuation
This table compares Occidental Petroleum and PermRock Royalty Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Occidental Petroleum||$13.27 billion||4.59||$1.31 billion||$0.89||89.44|
|PermRock Royalty Trust||N/A||N/A||N/A||N/A||N/A|
Occidental Petroleum has higher revenue and earnings than PermRock Royalty Trust.
Occidental Petroleum beats PermRock Royalty Trust on 8 of the 12 factors compared between the two stocks.
About Occidental Petroleum
Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally. The company operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. The Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also trades around its assets consisting of transportation and storage capacity; operates a crude oil export terminal; and invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.
About PermRock Royalty Trust
PermRock Royalty Trust owns 80% net profits interest in the oil and natural gas production properties acquired by Boaz Energy II, LLC in the Permian Basin, Texas. The company was founded in 2017 and is based in Fort Worth, Texas.
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