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

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ConocoPhillips	1	6	17	0	2.67
LandBridge	2	5	3	0	2.10

ConocoPhillips currently has a consensus price target of $115.54, suggesting a potential upside of 3.62%. LandBridge has a consensus price target of $73.33, suggesting a potential upside of 12.01%. Given LandBridge’s higher probable upside, analysts plainly believe LandBridge is more favorable than ConocoPhillips.

Profitability

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

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

Dividends

ConocoPhillips pays an annual dividend of $3.36 per share and has a dividend yield of 3.0%. LandBridge pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. ConocoPhillips pays out 53.0% of its earnings in the form of a dividend. LandBridge pays out 57.1% 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.

Institutional and Insider Ownership

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ConocoPhillips	$61.55 billion	2.24	$7.99 billion	$6.34	17.59
LandBridge	$109.95 million	46.36	-$41.77 million	$0.70	93.53

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.

Volatility & Risk

ConocoPhillips has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, LandBridge has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Summary

ConocoPhillips beats LandBridge on 10 of the 16 factors compared between the two stocks.

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.

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.