Mesa Royalty Trust (NYSE:MTR – Get Free Report) and LandBridge (NYSE:LB – Get Free Report) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Earnings and Valuation
This table compares Mesa Royalty Trust and LandBridge”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Mesa Royalty Trust | $1.14 million | 9.47 | $2.86 million | $1.21 | 4.80 |
LandBridge | $100.26 million | 31.87 | $260.42 million | $3.56 | 12.27 |
LandBridge has higher revenue and earnings than Mesa Royalty Trust. Mesa 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.
Institutional & Insider Ownership
Profitability
This table compares Mesa Royalty Trust and LandBridge’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Mesa Royalty Trust | 76.94% | 28.92% | 26.82% |
LandBridge | N/A | N/A | N/A |
Dividends
Mesa Royalty Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.7%. LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.4%. Mesa Royalty Trust pays out 3.3% of its earnings in the form of a dividend. LandBridge pays out 16.9% 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.
Analyst Recommendations
This is a summary of current recommendations and price targets for Mesa Royalty Trust and LandBridge, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Mesa Royalty Trust | 0 | 0 | 0 | 0 | N/A |
LandBridge | 0 | 2 | 6 | 0 | 2.75 |
LandBridge has a consensus price target of $34.14, indicating a potential downside of 21.83%. Given LandBridge’s higher probable upside, analysts plainly believe LandBridge is more favorable than Mesa Royalty Trust.
Summary
LandBridge beats Mesa Royalty Trust on 9 of the 14 factors compared between the two stocks.
About Mesa Royalty Trust
Mesa Royalty Trust owns overriding royalty interests in various oil and gas producing properties in the United States. It holds interests in properties located in the Hugoton field of Kansas; and the San Juan Basin field of Northwestern New Mexico and Southwestern Colorado. The company was founded in 1979 and is based in Houston, 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.
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