Financial Analysis: Texas Pacific Land Trust (TPL) versus San Juan Basin Royalty Trust (SJT)

Texas Pacific Land Trust (NYSE: TPL) and San Juan Basin Royalty Trust (NYSE:SJT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Risk & Volatility

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Texas Pacific Land Trust has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, San Juan Basin Royalty Trust has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500.

Insider & Institutional Ownership

39.7% of Texas Pacific Land Trust shares are held by institutional investors. Comparatively, 24.6% of San Juan Basin Royalty Trust shares are held by institutional investors. 0.9% of Texas Pacific Land Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Texas Pacific Land Trust and San Juan Basin Royalty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Texas Pacific Land Trust 63.97% 135.47% 82.60%
San Juan Basin Royalty Trust 96.07% 556.42% 308.28%

Dividends

Texas Pacific Land Trust pays an annual dividend of $1.05 per share and has a dividend yield of 0.2%. San Juan Basin Royalty Trust pays an annual dividend of $0.37 per share and has a dividend yield of 5.5%. Texas Pacific Land Trust has raised its dividend for 6 consecutive years and San Juan Basin Royalty Trust has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of recent ratings for Texas Pacific Land Trust and San Juan Basin Royalty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Texas Pacific Land Trust 0 0 0 0 N/A
San Juan Basin Royalty Trust 0 0 0 0 N/A

Valuation & Earnings

This table compares Texas Pacific Land Trust and San Juan Basin Royalty Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Texas Pacific Land Trust $132.41 million 30.26 $76.36 million N/A N/A
San Juan Basin Royalty Trust $40.73 million 7.76 $39.13 million N/A N/A

Texas Pacific Land Trust has higher revenue and earnings than San Juan Basin Royalty Trust.

Summary

Texas Pacific Land Trust beats San Juan Basin Royalty Trust on 8 of the 12 factors compared between the two stocks.

Texas Pacific Land Trust Company Profile

Texas Pacific Land Trust holds title to tracts of land in the state of Texas. The company operates through two segments, Land and Resource Management, and Water Service and Operations. It sells, leases, and manages these lands for the benefit of the holders of Certificates of Proprietary Interest in the Trust. The company has oil, gas, and water royalties interests; enters into easement contracts covering activities, such as oil and gas pipelines and subsurface wellbore easements; sells water and land; and leases land. As of December 31, 2017, it owned the surface estate in 887,698 acres of land comprising various separate tracts located in 18 counties in the western part of Texas; and grazing leases covering approximately 862,800 acres of the Trust's land. The company also owns a 1/128 nonparticipating perpetual oil and gas royalty interest under 85,414 acres of land, as well as a 1/16 nonparticipating perpetual oil and gas royalty interest under 373,777 acres of land in the western part of Texas. Texas Pacific Land Trust was founded in 1888 and is headquartered in Dallas, Texas.

San Juan Basin Royalty Trust Company Profile

San Juan Basin Royalty Trust operates as an express trust in Texas. The company has a 75% net overriding royalty interest carved out of Burlington's oil and gas interests (the subject interests) in properties located in the San Juan Basin in northwestern New Mexico. The subject interests consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico, as well as 833.7 net wells. Compass Bank serves as the trustee of the San Juan Basin Royalty Trust. The company was founded in 1980 and is based in Fort Worth, Texas.

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