Southwestern Energy (NYSE:SWN) and PermRock Royalty Trust (NYSE:PRT) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
This table compares Southwestern Energy 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||12.03%||11.91%|
53.0% of PermRock Royalty Trust shares are owned by institutional investors. 0.7% of Southwestern Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Southwestern Energy has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, PermRock Royalty Trust has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.
Valuation & Earnings
This table compares Southwestern Energy and PermRock Royalty Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Southwestern Energy||$3.86 billion||0.22||$537.00 million||$1.02||1.56|
|PermRock Royalty Trust||$16.24 million||3.72||$15.59 million||N/A||N/A|
Southwestern Energy has higher revenue and earnings than PermRock Royalty Trust.
This is a summary of current recommendations for Southwestern Energy and PermRock Royalty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PermRock Royalty Trust||0||0||0||0||N/A|
Southwestern Energy presently has a consensus target price of $3.16, suggesting a potential upside of 99.02%. Given Southwestern Energy’s higher possible upside, analysts plainly believe Southwestern Energy is more favorable than PermRock Royalty Trust.
Southwestern Energy beats PermRock Royalty Trust on 7 of the 12 factors compared between the two stocks.
Southwestern Energy Company Profile
Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas and oil in the United States. It operates through two segments, Exploration and Production, and Midstream. The company focuses on the development of unconventional natural gas reservoirs located in Pennsylvania and West Virginia. As of December 31, 2018, it had approximately 184,024 net acres in Northeast Appalachia; and approximately 297,445 net acres in Southwest Appalachia. The company's estimated proved natural gas, oil, and NGLs reserves comprise 11,921 billion cubic feet of natural gas equivalent (Bcfe); and 6,364 Bcfe of proved undeveloped reserves. Southwestern Energy Company was founded in 1929 and is headquartered in Spring, Texas.
PermRock Royalty Trust Company Profile
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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