Repsol (OTCMKTS:REPYY – Get Free Report) and Permian Basin Royalty Trust (NYSE:PBT – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.
Dividends
Repsol pays an annual dividend of $0.99 per share and has a dividend yield of 2.9%. Permian Basin Royalty Trust pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Repsol pays out 39.0% of its earnings in the form of a dividend. Permian Basin Royalty Trust pays out 68.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Repsol is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Repsol has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500. Comparatively, Permian Basin Royalty Trust has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Repsol | 0 | 2 | 7 | 2 | 3.00 |
| Permian Basin Royalty Trust | 0 | 1 | 0 | 0 | 2.00 |
Repsol currently has a consensus target price of $87.50, indicating a potential upside of 158.34%. Given Repsol’s stronger consensus rating and higher probable upside, analysts clearly believe Repsol is more favorable than Permian Basin Royalty Trust.
Profitability
This table compares Repsol and Permian Basin Royalty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Repsol | 5.81% | 9.96% | 4.54% |
| Permian Basin Royalty Trust | 91.96% | 9,990.08% | 510.19% |
Institutional & Insider Ownership
0.3% of Repsol shares are held by institutional investors. Comparatively, 28.9% of Permian Basin Royalty Trust shares are held by institutional investors. 1.0% of Repsol shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Repsol and Permian Basin Royalty Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Repsol | $61.56 billion | 0.61 | $2.15 billion | $2.54 | 13.33 |
| Permian Basin Royalty Trust | $16.13 million | 100.94 | $14.30 million | $0.35 | 99.81 |
Repsol has higher revenue and earnings than Permian Basin Royalty Trust. Repsol is trading at a lower price-to-earnings ratio than Permian Basin Royalty Trust, indicating that it is currently the more affordable of the two stocks.
Summary
Repsol beats Permian Basin Royalty Trust on 10 of the 17 factors compared between the two stocks.
About Repsol
Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.
About Permian Basin Royalty Trust
Permian Basin Royalty Trust, an express trust, holds royalty interests in various oil and gas properties in the United States. The company holds a 75% net overriding royalty interest in the Waddell Ranch properties, including Dune, Sand Hills (Judkins), Sand Hills (McKnight), Sand Hills (Tubb), University-Waddell (Devonian) and Waddell fields in Crane County, Texas. It also holds a 95% net overriding royalty in the Texas Royalty properties, which consist of 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 Texas. Its Texas Royalty properties comprise approximately 125 separate royalty interests containing approximately 51,000 net producing acres. The company was founded in 1980 and is based in Dallas, Texas.
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