Head to Head Review: PermRock Royalty Trust (NYSE:PRT) & Sable Offshore (NYSE:SOC)

PermRock Royalty Trust (NYSE:PRT) and Sable Offshore (NYSE:SOC) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PermRock Royalty Trust	84.70%	6.74%	6.62%
Sable Offshore	N/A	-480.87%	-53.14%

Institutional & Insider Ownership

41.7% of PermRock Royalty Trust shares are owned by institutional investors. Comparatively, 26.2% of Sable Offshore shares are owned by institutional investors. 14.3% of Sable Offshore shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

PermRock Royalty Trust has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Sable Offshore has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500.

Earnings and Valuation

This table compares PermRock Royalty Trust and Sable Offshore’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PermRock Royalty Trust	$7.19 million	6.48	$6.26 million	$0.42	9.12
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A

PermRock Royalty Trust has higher revenue and earnings than Sable Offshore.

Analyst Ratings

This is a summary of current recommendations for PermRock Royalty Trust and Sable Offshore, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PermRock Royalty Trust	0	0	0	0	N/A
Sable Offshore	0	0	2	0	3.00

Sable Offshore has a consensus target price of $22.00, suggesting a potential upside of 44.26%. Given Sable Offshore’s higher possible upside, analysts clearly believe Sable Offshore is more favorable than PermRock Royalty Trust.

Summary

PermRock Royalty Trust beats Sable Offshore on 7 of the 10 factors compared between the two stocks.

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.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.