Reviewing Advantage Energy (OTCMKTS:AAVVF) & Permianville Royalty Trust (NYSE:PVL)

Permianville Royalty Trust (NYSE:PVL) and Advantage Energy (OTCMKTS:AAVVF) are both small-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Permianville Royalty Trust	11.30%	15.04%	15.03%
Advantage Energy	11.58%	4.92%	2.67%

Institutional & Insider Ownership

6.8% of Permianville Royalty Trust shares are owned by institutional investors. Comparatively, 7.8% of Advantage Energy shares are owned 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.

Volatility and Risk

Permianville Royalty Trust has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, Advantage Energy has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Permianville Royalty Trust and Advantage Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permianville Royalty Trust	0	1	0	0	2.00
Advantage Energy	0	5	2	1	2.50

Valuation and Earnings

This table compares Permianville Royalty Trust and Advantage Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permianville Royalty Trust	$7.81 million	7.73	$4.72 million	$0.17	10.76
Advantage Energy	$500.25 million	1.19	$37.97 million	$0.35	10.17

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

Summary

Advantage Energy beats Permianville Royalty Trust on 9 of the 13 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 Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.