Comparing Prairie Operating (NASDAQ:PROP) and PermRock Royalty Trust (NYSE:PRT)

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

Valuation and Earnings

This table compares Prairie Operating and PermRock Royalty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prairie Operating	$7.94 million	17.41	-$40.91 million	($3.00)	-0.92
PermRock Royalty Trust	$6.02 million	8.05	$5.16 million	$0.44	9.05

PermRock Royalty Trust has lower revenue, but higher earnings than Prairie Operating. Prairie Operating 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prairie Operating	N/A	21.04%	2.69%
PermRock Royalty Trust	84.81%	7.46%	7.31%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Prairie Operating and PermRock Royalty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prairie Operating	0	1	4	0	2.80
PermRock Royalty Trust	0	0	0	0	0.00

Prairie Operating currently has a consensus target price of $8.50, suggesting a potential upside of 209.09%. Given Prairie Operating’s stronger consensus rating and higher probable upside, research analysts plainly believe Prairie Operating is more favorable than PermRock Royalty Trust.

Risk and Volatility

Prairie Operating has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, PermRock Royalty Trust has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Insider & Institutional Ownership

34.3% of Prairie Operating shares are held by institutional investors. Comparatively, 41.7% of PermRock Royalty Trust shares are held by institutional investors. 15.4% of Prairie Operating shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Prairie Operating beats PermRock Royalty Trust on 8 of the 14 factors compared between the two stocks.

About Prairie Operating

Prairie Operating Co., an independent energy company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company holds assets in the Denver-Julesburg Basin in Colorado; and the Niobrara and Codell formations. Prairie Operating Co. is based in Houston Texas.

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.