Texas Pacific Land (NYSE:TPL) and Siemens Energy (OTCMKTS:SMNEY) Critical Contrast

Siemens Energy (OTCMKTS:SMNEY) and Texas Pacific Land (NYSE:TPL) are both large-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Siemens Energy	0	3	7	2	2.92
Texas Pacific Land	1	2	1	0	2.00

Texas Pacific Land has a consensus price target of $639.00, indicating a potential upside of 18.53%. Given Texas Pacific Land’s higher possible upside, analysts clearly believe Texas Pacific Land is more favorable than Siemens Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Siemens Energy	4.75%	18.48%	3.50%
Texas Pacific Land	60.31%	36.18%	32.60%

Institutional and Insider Ownership

59.9% of Texas Pacific Land shares are owned by institutional investors. 6.9% of Texas Pacific Land shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Siemens Energy pays an annual dividend of $0.53 per share and has a dividend yield of 0.3%. Texas Pacific Land pays an annual dividend of $2.40 per share and has a dividend yield of 0.4%. Siemens Energy pays out 29.9% of its earnings in the form of a dividend. Texas Pacific Land pays out 34.4% 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. Texas Pacific Land has increased its dividend for 3 consecutive years. Texas Pacific Land is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Siemens Energy has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Texas Pacific Land has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Siemens Energy	$43.21 billion	3.48	$1.56 billion	$1.77	99.23
Texas Pacific Land	$798.19 million	46.56	$481.38 million	$6.98	77.24

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

Summary

Texas Pacific Land beats Siemens Energy on 11 of the 18 factors compared between the two stocks.

About Siemens Energy

Siemens Energy AG operates as an energy technology company worldwide. It operates through Gas Services, Grid Technologies, Transformation of Industry, and Siemens Gamesa segments. The company provides gas and steam turbines, generators, and heat pumps, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and high voltage direct current transmission systems, offshore windfarm grid connections, transformers, flexible alternating current transmission systems, high voltage substations, air and gas-insulated switchgears, digital grid solutions and components, and storage solutions. It also offers electrolyzers, industrial steam turbines, industrial generators, turbo and reciprocating compressors, compressor trains, and other systems and solutions; onshore and onshore wind turbines; design, engineering, manufacturing, and installation solutions for onshore markets; offshore wind turbine equipment design, manufacturing, and installation solutions; and operation and maintenance services for wind farms. The company serves utilities, independent power producers, project developers, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers. Siemens Energy AG was founded in 1866 and is based in Munich, Germany.

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.