Analyzing Texas Pacific Land (NYSE:TPL) and Snow Lake Resources (NASDAQ:LITM)

Texas Pacific Land (NYSE:TPL) and Snow Lake Resources (NASDAQ:LITM) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Insider & Institutional Ownership

59.9% of Texas Pacific Land shares are held by institutional investors. Comparatively, 0.2% of Snow Lake Resources shares are held by institutional investors. 6.9% of Texas Pacific Land shares are held by company insiders. Comparatively, 13.4% of Snow Lake Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Texas Pacific Land and Snow Lake Resources’ 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%
Snow Lake Resources	N/A	N/A	N/A

Earnings & Valuation

This table compares Texas Pacific Land and Snow Lake Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Pacific Land	$772.40 million	27.79	$453.96 million	$6.90	45.13
Snow Lake Resources	N/A	N/A	-$11.46 million	($3.90)	-0.87

Texas Pacific Land has higher revenue and earnings than Snow Lake Resources. Snow Lake Resources 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.

Volatility & Risk

Texas Pacific Land has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Snow Lake Resources has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Texas Pacific Land and Snow Lake Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Pacific Land	1	2	1	0	2.00
Snow Lake Resources	1	0	0	0	1.00

Texas Pacific Land currently has a consensus price target of $350.00, suggesting a potential upside of 12.40%. Given Texas Pacific Land’s stronger consensus rating and higher probable upside, equities analysts plainly believe Texas Pacific Land is more favorable than Snow Lake Resources.

Summary

Texas Pacific Land beats Snow Lake Resources on 12 of the 13 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 Snow Lake Resources

Snow Lake Resources Ltd., a natural resource exploration company, engages in the exploration and development of mineral resources in Canada. The company explores for lithium mineral resources. Its flagship property is the Thomson Brothers and Grass River lithium projects located to Crowduck Bay Fault region. The company was incorporated in 2018 and is based in Winnipeg, Canada.