Head-To-Head Survey: Hugoton Royalty Trust (OTCMKTS:HGTXU) and LandBridge (NYSE:LB)

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

Institutional and Insider Ownership

17.0% of Hugoton 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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

Valuation & Earnings

This table compares Hugoton 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
Hugoton Royalty Trust	$11.53 million	1.76	$11.10 million	$0.27	1.88
LandBridge	$100.26 million	35.77	N/A	N/A	N/A

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

Analyst Recommendations

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

	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 28.02%. Given LandBridge’s higher probable upside, analysts plainly believe LandBridge is more favorable than Hugoton Royalty Trust.

Summary

LandBridge beats Hugoton Royalty Trust on 5 of the 6 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.