Head to Head Analysis: Greenfire Resources (NYSE:GFR) & Texas Pacific Land (NYSE:TPL)

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

Profitability

This table compares Texas Pacific Land and Greenfire 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%
Greenfire Resources	20.20%	15.64%	10.47%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Texas Pacific Land and Greenfire 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
Greenfire Resources	1	1	0	0	1.50

Texas Pacific Land presently has a consensus target price of $350.00, suggesting a potential downside of 19.06%. Given Texas Pacific Land’s stronger consensus rating and higher possible upside, research analysts clearly believe Texas Pacific Land is more favorable than Greenfire Resources.

Insider & Institutional Ownership

59.9% of Texas Pacific Land shares are owned by institutional investors. Comparatively, 88.9% of Greenfire Resources shares are owned by institutional investors. 6.9% of Texas Pacific Land shares are owned by insiders. Comparatively, 20.0% of Greenfire Resources shares are owned by 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.

Volatility and Risk

Texas Pacific Land has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Greenfire Resources has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Earnings & Valuation

This table compares Texas Pacific Land and Greenfire Resources”s gross 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	38.59	$453.96 million	$6.90	62.67
Greenfire Resources	$600.67 million	0.67	$88.61 million	$1.35	4.28

Texas Pacific Land has higher revenue and earnings than Greenfire Resources. Greenfire 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.

Summary

Texas Pacific Land beats Greenfire Resources on 12 of the 14 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 Greenfire Resources

Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company is headquartered in Calgary, Canada.