Financial Review: LandBridge (NYSE:LB) & Permian Basin Royalty Trust (NYSE:PBT)

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

Institutional and Insider Ownership

28.9% of Permian Basin Royalty Trust shares are held by institutional investors. 17.8% of LandBridge shares are held 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.

Earnings and Valuation

This table compares LandBridge and Permian Basin Royalty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	N/A	N/A	N/A	$3.56	14.67
Permian Basin Royalty Trust	$29.10 million	N/A	$27.98 million	$0.68	17.24

Permian Basin Royalty Trust has higher revenue and earnings than LandBridge. 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.

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%

Analyst Recommendations

This is a summary of recent ratings and target prices for LandBridge and Permian Basin Royalty Trust, as provided 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 currently has a consensus target price of $36.57, suggesting a potential downside of 29.98%. Given LandBridge’s higher possible upside, analysts clearly believe LandBridge is more favorable than Permian Basin Royalty Trust.

Summary

Permian Basin Royalty Trust beats LandBridge on 6 of the 10 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.