Analyzing Enovix (NASDAQ:ENVX) and Texas Pacific Land (NYSE:TPL)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Texas Pacific Land and Enovix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Pacific Land	1	2	1	0	2.00
Enovix	1	4	6	0	2.45

Texas Pacific Land currently has a consensus price target of $639.00, indicating a potential upside of 36.66%. Enovix has a consensus price target of $13.46, indicating a potential upside of 175.79%. Given Enovix’s stronger consensus rating and higher possible upside, analysts plainly believe Enovix is more favorable than Texas Pacific Land.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Pacific Land	$798.19 million	40.38	$481.38 million	$6.98	66.99
Enovix	$31.82 million	33.31	-$156.74 million	($0.77)	-6.34

Texas Pacific Land has higher revenue and earnings than Enovix. Enovix 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Texas Pacific Land	60.31%	36.18%	32.60%
Enovix	-492.57%	-64.29%	-23.65%

Volatility and Risk

Texas Pacific Land has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Enovix has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500.

Insider & Institutional Ownership

59.9% of Texas Pacific Land shares are owned by institutional investors. Comparatively, 50.9% of Enovix shares are owned by institutional investors. 6.9% of Texas Pacific Land shares are owned by company insiders. Comparatively, 14.1% of Enovix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Texas Pacific Land beats Enovix on 9 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 Enovix

Enovix Corporation designs develops and manufactures silicon-anode lithium-ion batteries. It serves wearables and IoT, smartphone, laptops and tablets, industrial and medical, and electric vehicles industries. The company was founded in 2007 and is headquartered in Fremont, California.