LandBridge (NYSE:LB) & Permian Basin Royalty Trust (NYSE:PBT) Financial Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Permian Basin Royalty Trust	96.28%	15,940.96%	672.47%
LandBridge	N/A	N/A	N/A

Institutional and Insider Ownership

28.9% of Permian Basin 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 will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Permian Basin Royalty Trust and LandBridge, as reported by MarketBeat.

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

LandBridge has a consensus price target of $36.57, suggesting a potential downside of 32.22%. Given LandBridge’s higher possible upside, analysts clearly believe LandBridge is more favorable than Permian Basin Royalty Trust.

Dividends

Permian Basin Royalty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 5.2%. LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.1%. Permian Basin Royalty Trust pays out 96.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LandBridge pays out 16.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Permian Basin Royalty Trust and LandBridge”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permian Basin Royalty Trust	$32.66 million	16.60	$27.98 million	$0.62	18.76
LandBridge	$100.26 million	39.37	$260.42 million	$3.56	15.16

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

Summary

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

About Permian Basin Royalty Trust

Permian Basin Royalty Trust, an express trust, holds royalty interests in various oil and gas properties in the United States. The company holds a 75% net overriding royalty interest in the Waddell Ranch properties, including Dune, Sand Hills (Judkins), Sand Hills (McKnight), Sand Hills (Tubb), University-Waddell (Devonian) and Waddell fields in Crane County, Texas. It also holds a 95% net overriding royalty in the Texas Royalty properties, which consist of various producing oil fields, such as Yates, Wasson, Sand Hills, East Texas, Kelly-Snyder, Panhandle Regular, N. Cowden, Todd, Keystone, Kermit, McElroy, Howard-Glasscock, Seminole, and others located in Texas. Its Texas Royalty properties comprise approximately 125 separate royalty interests containing approximately 51,000 net producing acres. The company was founded in 1980 and is based in Dallas, Texas.

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.