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

Hugoton Royalty Trust (OTCMKTS:HGTXU) 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 valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hugoton Royalty Trust	N/A	N/A	N/A
LandBridge	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hugoton Royalty Trust	$11.53 million	1.77	$11.10 million	$0.27	1.89
LandBridge	$100.26 million	37.29	N/A	N/A	N/A

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

Dividends

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

Analyst Recommendations

This is a summary of current ratings and price targets for Hugoton Royalty Trust and LandBridge, as provided by MarketBeat.com.

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

LandBridge has a consensus price target of $35.29, indicating a potential downside of 30.46%. Given LandBridge’s higher probable upside, analysts plainly believe LandBridge is more favorable than Hugoton Royalty Trust.

Insider and Institutional Ownership

17.0% of Hugoton Royalty Trust shares are held by institutional investors. 17.8% of LandBridge shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

LandBridge beats Hugoton Royalty Trust on 6 of the 8 factors compared between the two stocks.

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.

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.