Comparing LandBridge (NYSE:LB) & ConocoPhillips (NYSE:COP)

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

Dividends

LandBridge pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. ConocoPhillips pays an annual dividend of $3.36 per share and has a dividend yield of 3.0%. LandBridge pays out 57.1% of its earnings in the form of a dividend. ConocoPhillips pays out 53.0% 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. ConocoPhillips is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares LandBridge and ConocoPhillips’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LandBridge	13.72%	4.63%	2.91%
ConocoPhillips	12.98%	11.90%	6.30%

Institutional and Insider Ownership

82.4% of ConocoPhillips shares are owned by institutional investors. 70.4% of LandBridge shares are owned by company insiders. Comparatively, 0.2% of ConocoPhillips shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$109.95 million	44.35	-$41.77 million	$0.70	89.47
ConocoPhillips	$61.55 billion	2.22	$7.99 billion	$6.34	17.44

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for LandBridge and ConocoPhillips, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LandBridge	2	5	3	0	2.10
ConocoPhillips	1	7	16	1	2.68

LandBridge currently has a consensus target price of $73.33, suggesting a potential upside of 17.09%. ConocoPhillips has a consensus target price of $115.54, suggesting a potential upside of 4.51%. Given LandBridge’s higher possible upside, equities research analysts plainly believe LandBridge is more favorable than ConocoPhillips.

Risk and Volatility

LandBridge has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, ConocoPhillips has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Summary

ConocoPhillips beats LandBridge on 11 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 ConocoPhillips

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids in the United States, Canada, China, Libya, Malaysia, Norway, the United Kingdom, and internationally. The company's portfolio includes unconventional plays in North America; conventional assets in North America, Europe, Asia, and Australia; global LNG developments; oil sands assets in Canada; and an inventory of global exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas.