Financial Comparison: Hugoton Royalty Trust (OTCMKTS:HGTXU) versus LandBridge (NYSE:LB)

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

Dividends

LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.6%. Hugoton Royalty Trust pays an annual dividend of $0.46 per share and has a dividend yield of 97.5%. LandBridge pays out 16.9% of its earnings in the form of a dividend. Hugoton Royalty Trust pays out 170.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares LandBridge and Hugoton 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
Hugoton Royalty Trust	96.22%	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for LandBridge and Hugoton Royalty Trust, as reported by MarketBeat.com.

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

LandBridge currently has a consensus target price of $34.14, indicating a potential downside of 11.71%. Given LandBridge’s higher possible upside, equities research analysts clearly believe LandBridge is more favorable than Hugoton Royalty Trust.

Insider & Institutional Ownership

17.0% of Hugoton Royalty Trust shares are owned by institutional investors. 17.8% of LandBridge shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$100.26 million	28.21	$260.42 million	$3.56	10.86
Hugoton Royalty Trust	$11.53 million	1.64	$11.10 million	$0.27	1.75

LandBridge has higher revenue and earnings than Hugoton Royalty Trust. Hugoton 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 Hugoton Royalty Trust on 9 of the 12 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 Hugoton Royalty Trust

Hugoton Royalty Trust operates as an express trust in the United States. It holds 80% net profits interests in various natural gas producing working interest properties in Kansas, Oklahoma, and Wyoming under conveyances. The company was founded in 1998 and is based in Dallas, Texas.