Permian Resources (NYSE:PR) versus Sabine Royalty Trust (NYSE:SBR) Financial Analysis

Sabine Royalty Trust (NYSE:SBR) and Permian Resources (NYSE:PR) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Analyst Ratings

This is a summary of current ratings for Sabine Royalty Trust and Permian Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabine Royalty Trust	0	0	1	0	3.00
Permian Resources	0	3	13	6	3.14

Permian Resources has a consensus price target of $24.00, indicating a potential upside of 0.95%. Given Permian Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Permian Resources is more favorable than Sabine Royalty Trust.

Dividends

Sabine Royalty Trust pays an annual dividend of $7.43 per share and has a dividend yield of 9.9%. Permian Resources pays an annual dividend of $0.64 per share and has a dividend yield of 2.7%. Sabine Royalty Trust pays out 151.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Permian Resources pays out 42.4% of its earnings in the form of a dividend. Permian Resources has raised its dividend for 1 consecutive years.

Volatility and Risk

Sabine Royalty Trust has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, Permian Resources has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Insider and Institutional Ownership

15.8% of Sabine Royalty Trust shares are owned by institutional investors. Comparatively, 91.8% of Permian Resources shares are owned by institutional investors. 5.0% of Permian Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sabine Royalty Trust	94.90%	961.80%	839.84%
Permian Resources	21.52%	13.47%	8.66%

Valuation & Earnings

This table compares Sabine Royalty Trust and Permian Resources”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	$77.53 million	14.07	$73.44 million	$4.90	15.27
Permian Resources	$5.07 billion	3.93	$935.17 million	$1.51	15.75

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

Summary

Permian Resources beats Sabine Royalty Trust on 12 of the 18 factors compared between the two stocks.

About Sabine Royalty Trust

Sabine Royalty Trust holds royalty and mineral interests in various producing 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. Sabine Royalty Trust was founded in 1982 and is based in Dallas, Texas.

About Permian Resources

Permian Resources Corporation, an independent oil and natural gas company, focuses on the development of crude oil and related liquids-rich natural gas reserves in the United States. The company’s assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of acreage blocks in West Texas, Eddy County, Lea County, and New Mexico. The company was formerly known as Centennial Resource Development, Inc. and changed its name to Permian Resources Corporation in September 2022. Permian Resources Corporation was incorporated in 2015 and is headquartered in Midland, Texas.