Comparing VOC Energy Trust (NYSE:VOC) and Permian Resources (NYSE:PR)

VOC Energy Trust (NYSE:VOC) and Permian Resources (NYSE:PR) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Valuation & Earnings

This table compares VOC Energy Trust and Permian Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VOC Energy Trust	$8.62 million	6.24	$7.39 million	$0.44	7.19
Permian Resources	$5.07 billion	3.34	$935.17 million	$0.86	23.49

Permian Resources has higher revenue and earnings than VOC Energy Trust. VOC Energy 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VOC Energy Trust	90.03%	71.27%	71.27%
Permian Resources	12.79%	10.53%	6.71%

Risk & Volatility

VOC Energy Trust has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, Permian Resources has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Dividends

VOC Energy Trust pays an annual dividend of $0.38 per share and has a dividend yield of 12.0%. Permian Resources pays an annual dividend of $0.64 per share and has a dividend yield of 3.2%. VOC Energy Trust pays out 86.4% 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 74.4% of its earnings in the form of a dividend. Permian Resources has increased its dividend for 1 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for VOC Energy Trust and Permian Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VOC Energy Trust	1	0	0	0	1.00
Permian Resources	0	4	14	4	3.00

Permian Resources has a consensus target price of $23.29, indicating a potential upside of 15.31%. Given Permian Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Permian Resources is more favorable than VOC Energy Trust.

Institutional & Insider Ownership

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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Permian Resources beats VOC Energy Trust on 13 of the 18 factors compared between the two stocks.

About VOC Energy Trust

VOC Energy Trust acquires and holds a term net profits interest of the net proceeds from production and sale of the interests in oil and natural gas properties in the states of Kansas and Texas. The company has an 80% term net profits interest of the net proceeds on the underlying properties. As of December 31, 2021, its underlying properties had interests in 452.5 net producing wells and 51,147.2 net acres. VOC Energy Trust was incorporated in 2010 and is based in Houston, 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.