LandBridge (NYSE:LB) & Hugoton Royalty Trust (OTCMKTS:HGTXU) Head to Head Analysis
by Tristan Rich · The Markets DailyHugoton Royalty Trust (OTCMKTS:HGTXU – Get Free Report) and LandBridge (NYSE:LB – Get Free Report) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Valuation and Earnings
This table compares Hugoton Royalty Trust and LandBridge”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hugoton Royalty Trust | $11.53 million | 1.87 | $11.10 million | $0.27 | 1.99 |
| LandBridge | $100.26 million | 29.04 | $260.42 million | $3.56 | 11.18 |
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.
Analyst Ratings
This is a breakdown of current ratings and price targets for Hugoton Royalty Trust and LandBridge, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hugoton 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 14.21%. Given LandBridge’s higher probable upside, analysts clearly believe LandBridge is more favorable than Hugoton Royalty Trust.
Dividends
Hugoton Royalty Trust pays an annual dividend of $0.46 per share and has a dividend yield of 85.4%. LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. 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. LandBridge pays out 16.9% of its earnings in the form of a dividend.
Profitability
This table compares Hugoton Royalty Trust and LandBridge’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hugoton Royalty Trust | 96.22% | N/A | N/A |
| LandBridge | N/A | N/A | N/A |
Institutional and Insider Ownership
17.0% of Hugoton Royalty Trust shares are owned by institutional investors. 17.8% of LandBridge shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
LandBridge beats Hugoton Royalty Trust on 9 of the 12 factors compared between the two stocks.
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.
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.