Critical Survey: Permianville Royalty Trust (NYSE:PVL) & DHT (NYSE:DHT)

DHT (NYSE:DHT) and Permianville Royalty Trust (NYSE:PVL) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for DHT and Permianville Royalty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHT	0	2	3	0	2.60
Permianville Royalty Trust	0	1	0	0	2.00

DHT presently has a consensus target price of $19.33, suggesting a potential downside of 9.30%. Given DHT’s stronger consensus rating and higher probable upside, research analysts plainly believe DHT is more favorable than Permianville Royalty Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DHT	65.52%	39.40%	28.63%
Permianville Royalty Trust	11.30%	15.04%	15.03%

Insider and Institutional Ownership

58.5% of DHT shares are owned by institutional investors. Comparatively, 6.8% of Permianville Royalty Trust shares are owned by institutional investors. 1.6% of DHT shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

DHT pays an annual dividend of $4.88 per share and has a dividend yield of 22.9%. Permianville Royalty Trust pays an annual dividend of $0.32 per share and has a dividend yield of 17.4%. DHT pays out 166.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Permianville Royalty Trust pays out 188.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DHT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares DHT 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
DHT	$498.40 million	6.89	$211.09 million	$2.94	7.25
Permianville Royalty Trust	$47.08 million	1.29	$4.72 million	$0.17	10.81

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

Risk and Volatility

DHT has a beta of -0.09, indicating that its share price is 109% less volatile than the S&P 500. Comparatively, Permianville Royalty Trust has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Summary

DHT beats Permianville Royalty Trust on 14 of the 16 factors compared between the two stocks.

About DHT

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.

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.