Analyzing LandBridge (NYSE:LB) & Sabine Royalty Trust (NYSE:SBR)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sabine Royalty Trust and LandBridge, as reported by MarketBeat.com.

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

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

Profitability

This table compares Sabine Royalty Trust and LandBridge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sabine Royalty Trust	96.63%	1,098.84%	930.38%
LandBridge	N/A	N/A	N/A

Valuation & Earnings

This table compares Sabine 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
Sabine Royalty Trust	$93.82 million	N/A	$90.25 million	$5.76	10.72
LandBridge	$100.26 million	29.04	$260.42 million	$3.56	11.18

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.

Dividends

Sabine Royalty Trust pays an annual dividend of $5.06 per share and has a dividend yield of 8.2%. LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. 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. LandBridge pays out 16.9% of its earnings in the form of a dividend.

Institutional and Insider Ownership

15.8% of Sabine Royalty Trust shares are owned by institutional investors. 17.8% of LandBridge shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

LandBridge beats Sabine Royalty Trust on 7 of the 13 factors compared between the two stocks.

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.

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.