Financial Review: Permian Basin Royalty Trust (PBT) vs. Sabine Royalty Trust (SBR)

Sabine Royalty Trust (NYSE:SBR) and Permian Basin Royalty Trust (NYSE:PBT) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Earnings and Valuation

This table compares Sabine Royalty Trust and Permian Basin Royalty Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sabine Royalty Trust $37.20 million 15.20 $34.72 million N/A N/A
Permian Basin Royalty Trust $30.56 million 10.14 $29.32 million N/A N/A

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

Dividends

Sabine Royalty Trust pays an annual dividend of $4.85 per share and has a dividend yield of 12.5%. Permian Basin Royalty Trust pays an annual dividend of $0.66 per share and has a dividend yield of 9.9%.

Profitability

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

Net Margins Return on Equity Return on Assets
Sabine Royalty Trust 94.34% 823.90% 583.95%
Permian Basin Royalty Trust 95.79% 6,166.83% 737.06%

Insider and Institutional Ownership

10.1% of Sabine Royalty Trust shares are owned by institutional investors. Comparatively, 10.7% of Permian Basin Royalty Trust shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Sabine Royalty Trust has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Permian Basin Royalty Trust has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sabine Royalty Trust and Permian Basin Royalty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sabine Royalty Trust 0 0 0 0 N/A
Permian Basin Royalty Trust 0 0 0 0 N/A

Summary

Permian Basin Royalty Trust beats Sabine Royalty Trust on 5 of the 9 factors compared between the two stocks.

About Sabine Royalty Trust

Sabine Royalty Trust holds royalty and mineral interests in various oil and gas properties in the United States. Its royalty and mineral interests include landowner's royalties, overriding royalty interests, minerals, production payments, and other similar non-participatory interest in certain producing and proved undeveloped oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. The company was founded in 1982 and is based in Dallas, Texas.

About Permian Basin Royalty Trust

Permian Basin Royalty Trust, an express trust, holds overriding royalty interests in various oil and gas properties in the United States. The company owns a 75% net overriding royalty interest in the Waddell Ranch properties comprising Dune, Judkins, McKnight, Tubb, University-Waddell, and Waddell fields located in Crane County, Texas. As of December 31, 2017, its Waddell Ranch properties contained 348 net productive oil wells, 65 net productive gas wells, and 102 net injection wells. The company also holds a 95% net overriding royalty in the Texas Royalty properties, which include 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 33 counties in Texas. Its Texas Royalty properties comprise approximately 125 separate royalty interests containing approximately 51,000 net producing acres. Permian Basin Royalty Trust was founded in 1980 and is based in Dallas, Texas.

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