LandBridge (NYSE:LB) and Sabine Royalty Trust (NYSE:SBR) Financial Survey

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

Insider and Institutional Ownership

15.8% of Sabine 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 will outperform the market over the long term.

Dividends

LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Sabine Royalty Trust pays an annual dividend of $5.06 per share and has a dividend yield of 8.2%. LandBridge pays out 16.9% of its earnings in the form of a dividend. Sabine Royalty Trust pays out 87.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares LandBridge and Sabine 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
Sabine Royalty Trust	96.63%	1,098.84%	930.38%

Valuation and Earnings

This table compares LandBridge and Sabine Royalty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$100.26 million	29.04	$260.42 million	$3.56	11.18
Sabine Royalty Trust	$93.82 million	N/A	$90.25 million	$5.76	10.72

LandBridge has higher revenue and earnings than Sabine Royalty Trust. Sabine 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 recent ratings and price targets for LandBridge and Sabine Royalty Trust, as provided by MarketBeat.com.

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

LandBridge currently has a consensus target price of $34.14, indicating a potential downside of 14.21%. Given LandBridge’s higher probable upside, equities analysts plainly believe LandBridge is more favorable than Sabine Royalty Trust.

Summary

LandBridge beats Sabine Royalty Trust on 7 of the 13 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 Sabine Royalty Trust

Sabine Royalty Trust holds royalty and mineral interests in various producing oil and gas properties in the United States. Its royalty and mineral interests include landowner's royalties, overriding royalty interests, minerals, production payments, and other similar non-participatory interest in certain producing and proved undeveloped oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. Sabine Royalty Trust was founded in 1982 and is based in Dallas, Texas.