Permian Basin Royalty Trust (NYSE:PBT) versus LandBridge (NYSE:LB) Critical Contrast

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

Dividends

LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Permian Basin Royalty Trust pays an annual dividend of $0.61 per share and has a dividend yield of 5.2%. LandBridge pays out 16.9% of its earnings in the form of a dividend. Permian Basin Royalty Trust pays out 98.4% 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 Permian 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
Permian Basin Royalty Trust	96.28%	15,940.96%	672.47%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$100.26 million	33.44	$260.42 million	$3.56	12.87
Permian Basin Royalty Trust	$29.10 million	N/A	$27.98 million	$0.62	18.79

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.

Insider & Institutional 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

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

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

LandBridge presently has a consensus target price of $34.14, indicating a potential downside of 25.50%. Given LandBridge’s higher probable upside, equities analysts plainly believe LandBridge is more favorable than Permian Basin Royalty Trust.

Summary

LandBridge beats Permian Basin Royalty Trust on 7 of the 13 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 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.