Cenovus Energy (NYSE:CVE) vs. Permianville Royalty Trust (NYSE:PVL) Financial Comparison

Permianville Royalty Trust (NYSE:PVL) and Cenovus Energy (NYSE:CVE) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Risk and Volatility

Permianville Royalty Trust has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Cenovus Energy has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500.

Institutional and Insider Ownership

6.8% of Permianville Royalty Trust shares are held by institutional investors. Comparatively, 51.2% of Cenovus Energy shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Permianville Royalty Trust and Cenovus Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Permianville Royalty Trust	31.22%	24.89%	24.89%
Cenovus Energy	7.88%	14.85%	7.61%

Earnings and Valuation

This table compares Permianville Royalty Trust and Cenovus Energy’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permianville Royalty Trust	$45.21 million	1.19	$10.60 million	$0.43	3.79
Cenovus Energy	$38.67 billion	1.02	$3.04 billion	$1.58	13.35

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Permianville Royalty Trust and Cenovus Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permianville Royalty Trust	0	0	0	0	N/A
Cenovus Energy	0	0	5	0	3.00

Cenovus Energy has a consensus target price of $26.67, suggesting a potential upside of 26.38%. Given Cenovus Energy’s higher probable upside, analysts plainly believe Cenovus Energy is more favorable than Permianville Royalty Trust.

Summary

Cenovus Energy beats Permianville Royalty Trust on 8 of the 12 factors compared between the two stocks.

About Permianville Royalty Trust

Permianville Royalty Trust operates as a statutory trust. It is involved in the acquisition and holding of net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from properties located in the states of Texas, Louisiana, and New Mexico. The company was formerly known as Enduro Royalty Trust and changed its name to Permianville Royalty Trust in September 2018. Permianville Royalty Trust was incorporated in 2011 and is based in Houston, Texas.

About Cenovus Energy

Cenovus Energy Inc., together with its subsidiaries, develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally. The company operates through Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining segments. The Oil Sands segment develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. This segment assets include Foster Creek, Christina Lake, and Sunrise projects, as well as Lloydminster thermal and conventional heavy oil assets. The Conventional segment holds natural gas liquids and natural gas assets primarily located in Elmworth-Wapiti, Kaybob-Edson, Clearwater, and Rainbow Lake operating in Alberta and British Columbia, as well as interests in various natural gas processing facilities. The offshore segment engages in offshore operation, exploration, and development activities in China and the East Coast of Canada. The Canadian Refining segment owns and operates Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt, and other ancillary products, as well as Bruderheim crude-by-rail terminal and ethanol plants. The U.S. Refining segment refines crude oil to produce gasoline, diesel, jet fuel, asphalt, and other products. Cenovus Energy Inc. is headquartered in Calgary, Canada.