Comparing Battalion Oil (NYSE:BATL) & PermRock Royalty Trust (NYSE:PRT)

PermRock Royalty Trust (NYSE:PRT) and Battalion Oil (NYSE:BATL) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Profitability

This table compares PermRock Royalty Trust and Battalion Oil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PermRock Royalty Trust	85.38%	6.99%	6.86%
Battalion Oil	-26.17%	-99.89%	-8.48%

Institutional and Insider Ownership

41.7% of PermRock Royalty Trust shares are owned by institutional investors. Comparatively, 86.0% of Battalion Oil shares are owned by institutional investors. 56.9% of Battalion Oil shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for PermRock Royalty Trust and Battalion Oil, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PermRock Royalty Trust	0	0	0	0	N/A
Battalion Oil	0	0	0	0	N/A

Valuation and Earnings

This table compares PermRock Royalty Trust and Battalion Oil”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PermRock Royalty Trust	$6.20 million	7.91	$6.26 million	$0.42	9.60
Battalion Oil	$200.32 million	0.54	-$3.05 million	($4.46)	-1.48

PermRock Royalty Trust has higher earnings, but lower revenue than Battalion Oil. Battalion Oil 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.

Volatility & Risk

PermRock Royalty Trust has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Battalion Oil has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Summary

PermRock Royalty Trust beats Battalion Oil on 7 of the 10 factors compared between the two stocks.

About PermRock Royalty Trust

PermRock Royalty Trust operates as a statutory trust. It owns interests in the oil and natural gas producing properties. The company's underlying properties include 22,394 net acres in the Permian Basin. The company was founded in 2017 and is based in Dallas, Texas.

About Battalion Oil

Battalion Oil Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. It holds interests in the Delaware Basin located in the counties of Pecos, Ward, Reeves, and Winkler, Texas. It serves independent marketers, and oil and natural gas and gas pipeline companies. The company was formerly known as Halcón Resources Corporation and changed its name to Battalion Oil Corporation in January 2020. Battalion Oil Corporation was founded in 1987 and is headquartered in Houston, Texas.