LandBridge (NYSE:LB) and Texas Pacific Land (NYSE:TPL) Financial Comparison

LandBridge (NYSE:LB) and Texas Pacific Land (NYSE:TPL) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Institutional and Insider Ownership

59.9% of Texas Pacific Land shares are held by institutional investors. 17.8% of LandBridge shares are held by company insiders. Comparatively, 20.0% of Texas Pacific Land shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Texas Pacific Land pays an annual dividend of $4.68 per share and has a dividend yield of 0.5%. LandBridge pays out 16.9% of its earnings in the form of a dividend. Texas Pacific Land pays out 24.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. LandBridge is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares LandBridge and Texas Pacific Land’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
Texas Pacific Land	66.71%	41.29%	37.22%

Analyst Recommendations

This is a summary of current ratings and recommmendations for LandBridge and Texas Pacific Land, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LandBridge	0	2	6	0	2.75
Texas Pacific Land	0	1	1	0	2.50

LandBridge currently has a consensus target price of $34.14, indicating a potential downside of 12.72%. Texas Pacific Land has a consensus target price of $694.17, indicating a potential downside of 21.51%. Given LandBridge’s stronger consensus rating and higher possible upside, equities analysts clearly believe LandBridge is more favorable than Texas Pacific Land.

Valuation and Earnings

This table compares LandBridge and Texas Pacific Land”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$100.26 million	28.54	$260.42 million	$3.56	10.99
Texas Pacific Land	$671.10 million	30.30	$405.64 million	$18.81	47.02

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

Summary

Texas Pacific Land beats LandBridge on 10 of the 15 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 Texas Pacific Land

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 4,000 additional net royalty acres, total of approximately 195,000 NRA located in the western part of Texas. The Land and Resource Management segment manages surface acres of land, and oil and gas royalty interest in West Texas. This segment also engages in easements, such as transporting oil, gas and related hydrocarbons, power line and utility, and subsurface wellbore easements. In addition, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche, sand, and other material, as well as sells land. The Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions to operators in the Permian Basin. This segment also holds produced water royalties. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas.