Contrasting LandBridge (NYSE:LB) & Occidental Petroleum (NYSE:OXY)

LandBridge (NYSE:LB) and Occidental Petroleum (NYSE:OXY) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Risk and Volatility

LandBridge has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Occidental Petroleum has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Insider and Institutional Ownership

88.7% of Occidental Petroleum shares are owned by institutional investors. 70.4% of LandBridge shares are owned by company insiders. Comparatively, 0.5% of Occidental Petroleum 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.

Dividends

LandBridge pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. Occidental Petroleum pays an annual dividend of $0.96 per share and has a dividend yield of 2.2%. LandBridge pays out 11.2% of its earnings in the form of a dividend. Occidental Petroleum pays out 56.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Occidental Petroleum has raised its dividend for 5 consecutive years. Occidental Petroleum is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares LandBridge and Occidental Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LandBridge	12.19%	5.63%	3.46%
Occidental Petroleum	8.79%	13.78%	4.35%

Earnings and Valuation

This table compares LandBridge and Occidental Petroleum”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$109.95 million	35.60	-$41.77 million	$3.56	14.39
Occidental Petroleum	$26.88 billion	1.60	$3.06 billion	$1.69	25.88

Occidental Petroleum has higher revenue and earnings than LandBridge. LandBridge is trading at a lower price-to-earnings ratio than Occidental Petroleum, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for LandBridge and Occidental Petroleum, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LandBridge	1	3	4	0	2.38
Occidental Petroleum	2	14	5	0	2.14

LandBridge presently has a consensus target price of $64.4286, indicating a potential upside of 25.77%. Occidental Petroleum has a consensus target price of $53.7143, indicating a potential upside of 22.81%. Given LandBridge’s stronger consensus rating and higher possible upside, research analysts plainly believe LandBridge is more favorable than Occidental Petroleum.

Summary

Occidental Petroleum beats LandBridge on 10 of the 17 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 Occidental Petroleum

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, and North Africa. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; and vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.