Head-To-Head Survey: LandBridge (NYSE:LB) versus Sabine Royalty Trust (NYSE:SBR)

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

Profitability

This table compares LandBridge and Sabine Royalty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LandBridge	N/A	N/A	N/A
Sabine Royalty Trust	96.63%	1,098.84%	930.38%

Dividends

LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Sabine Royalty Trust pays an annual dividend of $5.05 per share and has a dividend yield of 8.3%. LandBridge pays out 16.9% of its earnings in the form of a dividend. Sabine Royalty Trust pays out 87.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

15.8% of Sabine Royalty Trust shares are held by institutional investors. 17.8% of LandBridge shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for LandBridge and Sabine Royalty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LandBridge	0	2	6	0	2.75
Sabine Royalty Trust	0	0	0	0	N/A

LandBridge presently has a consensus price target of $34.14, indicating a potential downside of 16.97%. Given LandBridge’s higher possible upside, analysts plainly believe LandBridge is more favorable than Sabine Royalty Trust.

Earnings and Valuation

This table compares LandBridge and Sabine Royalty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$100.26 million	30.00	$260.42 million	$3.56	11.55
Sabine Royalty Trust	$91.81 million	9.61	$90.25 million	$5.76	10.51

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

Summary

LandBridge beats Sabine Royalty Trust on 8 of the 14 factors compared between the two stocks.

About LandBridge

LandBridge Company LLC owns and manages land and resources to support and enhance oil and natural gas development in the United States. It owns surface acres in and around the Delaware Basin in Texas and New Mexico. The company holds a portfolio of oil and gas royalties. It also sells brackish water and other surface composite materials. The company was founded in 2021 and is based in Houston, Texas. LandBridge Company LLC operates as a subsidiary of LandBridge Holdings LLC.

About Sabine Royalty Trust

Sabine Royalty Trust holds royalty and mineral interests in various producing oil and gas properties in the United States. Its royalty and mineral interests include landowner's royalties, overriding royalty interests, minerals, production payments, and other similar non-participatory interest in certain producing and proved undeveloped oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. Sabine Royalty Trust was founded in 1982 and is based in Dallas, Texas.