Laredo Petroleum (NYSE:LPI) and PermRock Royalty Trust (NYSE:PRT) Head-To-Head Comparison

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Laredo Petroleum and PermRock Royalty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Laredo Petroleum 1 6 4 0 2.27
PermRock Royalty Trust 0 0 0 0 N/A

Laredo Petroleum currently has a consensus target price of $4.55, indicating a potential upside of 89.49%. Given Laredo Petroleum’s higher possible upside, equities analysts clearly believe Laredo Petroleum is more favorable than PermRock Royalty Trust.

Earnings & Valuation

This table compares Laredo Petroleum and PermRock Royalty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Laredo Petroleum $1.11 billion 0.51 $324.59 million $0.93 2.58
PermRock Royalty Trust $16.24 million 4.58 $15.59 million N/A N/A

Laredo Petroleum has higher revenue and earnings than PermRock Royalty Trust.

Profitability

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

Net Margins Return on Equity Return on Assets
Laredo Petroleum 5.87% 14.25% 6.91%
PermRock Royalty Trust N/A 12.03% 11.91%

Volatility & Risk

Laredo Petroleum has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, PermRock Royalty Trust has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Insider and Institutional Ownership

96.8% of Laredo Petroleum shares are owned by institutional investors. Comparatively, 52.9% of PermRock Royalty Trust shares are owned by institutional investors. 3.0% of Laredo Petroleum shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Laredo Petroleum beats PermRock Royalty Trust on 9 of the 12 factors compared between the two stocks.

About Laredo Petroleum

Laredo Petroleum, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company also provides midstream and marketing services comprising transportation and marketing of oil and natural gas; and natural gas lift systems, crude oil and natural gas gathering, and water delivery and takeaway services. As of December 31, 2018, it had assembled 120,617 net acres in the Permian Basin; and had total proved reserves of 238,167 thousand barrels of oil equivalent. The company was formerly known as Laredo Petroleum Holdings, Inc. and changed its name to Laredo Petroleum, Inc. in December 2013. Laredo Petroleum, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.

About PermRock Royalty Trust

PermRock Royalty Trust owns 80% net profits interest in the oil and natural gas production properties acquired by Boaz Energy II, LLC in the Permian Basin, Texas. The company was founded in 2017 and is based in Fort Worth, Texas.

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