Contrasting San Juan Basin Royalty Trust (NYSE:SJT) & LandBridge (NYSE:LB)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for LandBridge and San Juan Basin Royalty Trust, as provided by MarketBeat.com.

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

LandBridge currently has a consensus price target of $34.14, suggesting a potential downside of 12.72%. Given LandBridge’s higher probable upside, research analysts plainly believe LandBridge is more favorable than San Juan Basin Royalty Trust.

Dividends

LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. San Juan Basin Royalty Trust pays an annual dividend of $0.27 per share and has a dividend yield of 7.3%. LandBridge pays out 16.9% of its earnings in the form of a dividend. San Juan Basin Royalty Trust pays out 64.3% 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.

Profitability

This table compares LandBridge and San Juan Basin 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
San Juan Basin Royalty Trust	82.97%	466.64%	245.06%

Insider and Institutional Ownership

10.4% of San Juan Basin Royalty Trust shares are owned by institutional investors. 17.8% of LandBridge shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares LandBridge and San Juan Basin Royalty Trust”s 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
San Juan Basin Royalty Trust	$15.25 million	11.31	$51.64 million	$0.42	8.81

LandBridge has higher revenue and earnings than San Juan Basin Royalty Trust. San Juan Basin 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 San Juan Basin Royalty Trust on 9 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 San Juan Basin Royalty Trust

San Juan Basin Royalty Trust operates as an express trust in Texas. The company has a 75% net overriding royalty interest in Southland's oil and natural gas interests in properties located in the San Juan Basin in northwestern New Mexico. It also owns subject interests consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net-producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico. The company was founded in 1980 and is based in Dallas, Texas.