Critical Contrast: LandBridge (NYSE:LB) versus Cross Timbers Royalty Trust (NYSE:CRT)

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

Analyst Recommendations

This is a breakdown of current ratings for Cross Timbers Royalty Trust and LandBridge, as reported by MarketBeat.

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

LandBridge has a consensus target price of $33.71, indicating a potential downside of 2.45%. Given LandBridge’s higher possible upside, analysts clearly believe LandBridge is more favorable than Cross Timbers Royalty Trust.

Valuation and Earnings

This table compares Cross Timbers Royalty Trust and LandBridge”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cross Timbers Royalty Trust	$8.63 million	6.36	$13.13 million	$1.57	5.83
LandBridge	N/A	N/A	N/A	$3.56	9.71

Cross Timbers Royalty Trust has higher revenue and earnings than LandBridge. Cross Timbers 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cross Timbers Royalty Trust	88.84%	291.46%	189.42%
LandBridge	N/A	N/A	N/A

Institutional & Insider Ownership

9.7% of Cross Timbers Royalty Trust shares are held by institutional investors. 9.4% of Cross Timbers Royalty Trust shares are held by company insiders. Comparatively, 17.8% of LandBridge shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

About Cross Timbers Royalty Trust

Cross Timbers Royalty Trust operates as an express trust in the United States. It holds 90% net profits interests in certain producing and nonproducing royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico; and 75% net profits working interest in four properties in Texas and three properties in Oklahoma. Cross Timbers Royalty Trust was founded in 1991 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.