ExxonMobil (NYSE:XOM) and Permian Basin Royalty Trust (NYSE:PBT) Financial Analysis

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

Valuation and Earnings

This table compares Permian Basin Royalty Trust and ExxonMobil”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permian Basin Royalty Trust	$16.13 million	102.28	$14.30 million	$0.35	101.13
ExxonMobil	$332.24 billion	2.17	$28.84 billion	$7.77	22.43

ExxonMobil has higher revenue and earnings than Permian Basin Royalty Trust. ExxonMobil 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Permian Basin Royalty Trust and ExxonMobil, 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
ExxonMobil	0	14	11	0	2.44

ExxonMobil has a consensus price target of $164.78, suggesting a potential downside of 5.43%. Given ExxonMobil’s stronger consensus rating and higher possible upside, analysts clearly believe ExxonMobil is more favorable than Permian Basin Royalty Trust.

Dividends

Permian Basin Royalty Trust pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. ExxonMobil pays an annual dividend of $4.12 per share and has a dividend yield of 2.4%. Permian Basin Royalty Trust pays out 68.6% of its earnings in the form of a dividend. ExxonMobil pays out 53.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ExxonMobil has raised its dividend for 42 consecutive years. ExxonMobil is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Permian Basin Royalty Trust has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, ExxonMobil has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.

Profitability

This table compares Permian Basin Royalty Trust and ExxonMobil’s 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%
ExxonMobil	8.88%	13.14%	7.62%

Insider & Institutional Ownership

28.9% of Permian Basin Royalty Trust shares are held by institutional investors. Comparatively, 61.8% of ExxonMobil shares are held by institutional investors. 0.0% of ExxonMobil 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.

Summary

ExxonMobil beats Permian Basin Royalty Trust on 11 of the 17 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 ExxonMobil

ExxonMobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments. The Upstream segment explores for and produces crude oil and natural gas. The Energy Products segment offers fuels, aromatics, catalysts, and licensing services. It sells its products under the Exxon, Esso, and Mobil brands. The Chemical Products segment manufactures and markets petrochemicals, including olefins, polyolefins, and intermediates. The Specialty Products segment offers performance products, including lubricants, basestocks, waxes, synthetics, elastomers, and resins. The company is also involved in the manufacturing, trade, transport, and selling crude oil, natural gas, petroleum products, petrochemicals, and other specialty products in pursuit of lower-emission business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, and lithium. Exxon Mobil Corporation was founded in 1870 and is based in Spring, Texas.