Texas Pacific Land Trust (TPL) vs. Marine Petroleum Trust (MARPS) Critical Review

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

Analyst Ratings

This is a summary of recent recommendations for Texas Pacific Land Trust and Marine Petroleum Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Texas Pacific Land Trust 0 0 0 0 N/A
Marine Petroleum Trust 0 0 0 0 N/A

Institutional and Insider Ownership

39.6% of Texas Pacific Land Trust shares are held by institutional investors. Comparatively, 2.7% of Marine Petroleum 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Texas Pacific Land Trust and Marine Petroleum Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Texas Pacific Land Trust $132.41 million 33.36 $76.36 million N/A N/A
Marine Petroleum Trust $870,000.00 5.17 $660,000.00 N/A N/A

Texas Pacific Land Trust has higher revenue and earnings than Marine Petroleum Trust.

Dividends

Texas Pacific Land Trust pays an annual dividend of $1.05 per share and has a dividend yield of 0.2%. Marine Petroleum Trust pays an annual dividend of $0.38 per share and has a dividend yield of 16.9%. Texas Pacific Land Trust has raised its dividend for 6 consecutive years.

Risk & Volatility

Texas Pacific Land Trust has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Marine Petroleum Trust has a beta of 2.29, meaning that its share price is 129% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Texas Pacific Land Trust 130.87% 126.45% 103.18%
Marine Petroleum Trust 76.51% 72.63% 72.63%

Summary

Texas Pacific Land Trust beats Marine Petroleum Trust on 10 of the 12 factors compared between the two stocks.

About Texas Pacific Land Trust

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.

About Marine Petroleum Trust

Marine Petroleum Trust (the Trust) is a royalty trust. The Trust is engaged in the administration and liquidation of rights to payments from certain oil and natural gas leases in the Gulf of Mexico, under license agreements and amendments between the Trust’s predecessors and Chevron Corporation (Chevron) and its assignees. The Trust distributes all income, after paying its liabilities and obligations, to the unit holders during the months of March, June, September and December each year. The Trust’s subsidiary, Marine Petroleum Corporation (MPC), holds title to interests in properties subject to the Trust’s interests that are situated offshore of Louisiana. MPC is engaged in the administration and collection of royalties. As of June 30, 2016, MPC held an overriding royalty interest equal to 0.75% of the value at the well of any oil, natural gas, or other minerals produced and sold from the leases. All aspects of MPC’s operations are conducted by third parties.

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