Comparing Hugoton Royalty Trust (OTCMKTS:HGTXU) and LandBridge (NYSE:LB)

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

Insider & Institutional 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$100.26 million	37.50	N/A	N/A	N/A
Hugoton Royalty Trust	$11.53 million	1.77	$11.10 million	$0.27	1.89

Hugoton Royalty Trust has lower revenue, but higher earnings than LandBridge.

Profitability

This table compares LandBridge and Hugoton 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
Hugoton Royalty Trust	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for LandBridge and Hugoton Royalty Trust, as provided by MarketBeat.

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

LandBridge currently has a consensus price target of $35.29, indicating a potential downside of 31.34%. Given LandBridge’s higher possible upside, equities analysts clearly believe LandBridge is more favorable than Hugoton Royalty Trust.

Dividends

LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Hugoton Royalty Trust pays an annual dividend of $0.46 per share and has a dividend yield of 90.2%. 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.

Summary

LandBridge beats Hugoton Royalty Trust on 6 of the 8 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 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.