Alvopetro Energy (OTCMKTS:ALVOF) vs. Texas Pacific Land (NYSE:TPL) Head-To-Head Comparison

Texas Pacific Land (NYSE:TPL) and Alvopetro Energy (OTCMKTS:ALVOF) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Profitability

This table compares Texas Pacific Land and Alvopetro Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Pacific Land	61.68%	38.15%	34.45%
Alvopetro Energy	37.69%	22.24%	17.66%

Volatility and Risk

Texas Pacific Land has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Alvopetro Energy has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500.

Dividends

Texas Pacific Land pays an annual dividend of $6.40 per share and has a dividend yield of 0.7%. Alvopetro Energy pays an annual dividend of $0.40 per share and has a dividend yield of 9.1%. Texas Pacific Land pays out 30.9% of its earnings in the form of a dividend. Alvopetro Energy pays out 76.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Texas Pacific Land has raised its dividend for 3 consecutive years.

Institutional & Insider Ownership

59.9% of Texas Pacific Land shares are held by institutional investors. 6.9% of Texas Pacific Land shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Texas Pacific Land and Alvopetro Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Pacific Land	$705.82 million	29.94	$453.96 million	$20.70	44.42
Alvopetro Energy	$45.52 million	3.54	$16.30 million	$0.52	8.45

Texas Pacific Land has higher revenue and earnings than Alvopetro Energy. Alvopetro Energy is trading at a lower price-to-earnings ratio than Texas Pacific Land, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Texas Pacific Land and Alvopetro Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Pacific Land	1	1	1	0	2.00
Alvopetro Energy	0	0	0	0	0.00

Texas Pacific Land presently has a consensus target price of $1,050.00, indicating a potential upside of 14.18%. Given Texas Pacific Land’s stronger consensus rating and higher probable upside, analysts plainly believe Texas Pacific Land is more favorable than Alvopetro Energy.

Summary

Texas Pacific Land beats Alvopetro Energy on 16 of the 17 factors compared between the two stocks.

About Texas Pacific Land

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 4,000 additional net royalty acres, total of approximately 195,000 NRA located in the western part of Texas. The Land and Resource Management segment manages surface acres of land, and oil and gas royalty interest in West Texas. This segment also engages in easements, such as transporting oil, gas and related hydrocarbons, power line and utility, and subsurface wellbore easements. In addition, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche, sand, and other material, as well as sells land. The Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions to operators in the Permian Basin. This segment also holds produced water royalties. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas.

About Alvopetro Energy

Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.