North European Oil Royalty Trust (NYSE:NRT) & LandBridge (NYSE:LB) Critical Analysis

North European Oil Royalty Trust (NYSE:NRT) and LandBridge (NYSE:LB) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a summary of current ratings and target prices for North European Oil Royalty Trust and LandBridge, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
North European Oil Royalty Trust	0	0	0	0	N/A
LandBridge	0	2	6	0	2.75

LandBridge has a consensus price target of $34.14, indicating a potential downside of 25.21%. Given LandBridge’s higher probable upside, analysts clearly believe LandBridge is more favorable than North European Oil Royalty Trust.

Profitability

This table compares North European Oil Royalty Trust and LandBridge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
North European Oil Royalty Trust	N/A	560.64%	238.08%
LandBridge	N/A	N/A	N/A

Dividends

North European Oil Royalty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 15.3%. LandBridge pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. North European Oil Royalty Trust pays out 64.1% of its earnings in the form of a dividend. LandBridge pays out 16.9% 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.

Earnings & Valuation

This table compares North European Oil Royalty Trust and LandBridge”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
North European Oil Royalty Trust	$5.11 million	9.88	$21.17 million	$1.31	4.20
LandBridge	$100.26 million	33.31	$260.42 million	$3.56	12.82

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

Insider and Institutional Ownership

7.0% of North European Oil Royalty Trust shares are held by institutional investors. 0.5% of North European Oil Royalty Trust shares are held by company insiders. Comparatively, 17.8% of LandBridge shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

LandBridge beats North European Oil Royalty Trust on 9 of the 13 factors compared between the two stocks.

About North European Oil Royalty Trust

North European Oil Royalty Trust, a grantor trust, holds overriding royalty rights covering gas and oil production in various concessions or leases in the Federal Republic of Germany. The company also has rights under contracts with German exploration and development subsidiaries of ExxonMobil Corp. and the Royal Dutch/Shell Group of Companies. In addition, it holds royalties for the sale of gas well gas, oil well gas, crude oil, condensate, and sulfur. North European Oil Royalty Trust was founded in 1975 and is based in Keene, New Hampshire.

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.