Critical Review: Cross Timbers Royalty Trust (NYSE:CRT) vs. LandBridge (NYSE:LB)

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

Valuation and Earnings

This table compares LandBridge and Cross Timbers Royalty Trust’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	N/A	N/A	N/A	$3.56	9.29
Cross Timbers Royalty Trust	$12.36 million	4.42	$13.13 million	$1.57	5.80

Cross Timbers Royalty Trust has higher revenue and earnings than LandBridge. Cross Timbers 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 recommendations for LandBridge and Cross Timbers Royalty Trust, as provided by MarketBeat.

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

LandBridge presently has a consensus target price of $33.71, indicating a potential upside of 1.95%. Given LandBridge’s higher probable upside, research analysts plainly believe LandBridge is more favorable than Cross Timbers Royalty Trust.

Institutional and Insider Ownership

9.7% of Cross Timbers Royalty Trust shares are held by institutional investors. 17.8% of LandBridge shares are held by insiders. Comparatively, 9.4% of Cross Timbers Royalty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares LandBridge and Cross Timbers 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
Cross Timbers Royalty Trust	88.84%	291.46%	189.42%

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 Cross Timbers Royalty Trust

Cross Timbers Royalty Trust operates as an express trust in the United States. It holds 90% net profits interests in certain producing and nonproducing royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico; and 75% net profits working interest in four properties in Texas and three properties in Oklahoma. Cross Timbers Royalty Trust was founded in 1991 and is based in Dallas, Texas.