PermRock Royalty Trust (NYSE:PRT) versus California Resources (NYSE:CRC) Financial Review

PermRock Royalty Trust (NYSE:PRT) and California Resources (NYSE:CRC) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares PermRock Royalty Trust and California Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PermRock Royalty Trust 49.64% 4.27% 4.20%
California Resources 241.65% 397.26% 130.91%

Earnings & Valuation

This table compares PermRock Royalty Trust and California Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PermRock Royalty Trust $3.19 million 26.86 $1.91 million $0.31 22.71
California Resources $1.56 billion 2.20 $1.77 billion $5.15 8.27

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

Insider and Institutional Ownership

0.8% of PermRock Royalty Trust shares are held by institutional investors. Comparatively, 92.9% of California Resources shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for PermRock Royalty Trust and California Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PermRock Royalty Trust 0 0 0 0 N/A
California Resources 0 0 3 0 3.00

California Resources has a consensus target price of $54.33, suggesting a potential upside of 27.60%. Given California Resources’ higher possible upside, analysts clearly believe California Resources is more favorable than PermRock Royalty Trust.

Summary

California Resources beats PermRock Royalty Trust on 9 of the 11 factors compared between the two stocks.

About PermRock Royalty Trust

PermRock Royalty Trust engages in the acquisition, development, and operation of oil and natural gas properties in the Permian Basin. The company was founded on November 22, 2017 and is headquartered in Fort Worth, TX.

About California Resources

California Resources Corporation operates as an independent oil and natural gas exploration and production company in the State of California. The company sells crude oil, natural gas, and natural gas liquids to marketers, California refineries, and other purchasers that have access to transportation and storage facilities. It holds interests in approximately 2.1 million net acres of mineral acreage. As of December 31, 2020, the company had proved reserves of 442 million barrels of oil equivalent. It also engages in the generation and sale of electricity to the local utility, other third parties, and the grid. The company was founded in 2014 and is based in Santa Clarita, California.

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