San Juan Basin Royalty Trust (NYSE:SJT – Get Free Report) and LandBridge (NYSE:LB – Get Free Report) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.
Profitability
This table compares San Juan Basin Royalty Trust and LandBridge’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
San Juan Basin Royalty Trust | 82.97% | 466.64% | 245.06% |
LandBridge | N/A | N/A | N/A |
Earnings & Valuation
This table compares San Juan Basin Royalty Trust and LandBridge”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
San Juan Basin Royalty Trust | $15.25 million | 11.86 | $51.64 million | $0.42 | 9.24 |
LandBridge | $100.26 million | 33.31 | $260.42 million | $3.56 | 12.82 |
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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and price targets for San Juan Basin Royalty Trust and LandBridge, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
San Juan Basin Royalty Trust | 0 | 0 | 0 | 0 | N/A |
LandBridge | 0 | 2 | 6 | 0 | 2.75 |
LandBridge has a consensus target price of $34.14, indicating a potential downside of 25.21%. Given LandBridge’s higher probable upside, analysts plainly believe LandBridge is more favorable than San Juan Basin Royalty Trust.
Dividends
San Juan Basin Royalty Trust pays an annual dividend of $0.27 per share and has a dividend yield of 7.0%. LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. San Juan Basin Royalty Trust pays out 64.3% 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.
Summary
LandBridge beats San Juan Basin Royalty Trust on 9 of the 14 factors compared between the two stocks.
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.
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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