Kodiak Gas Services (NYSE:KGS – Get Free Report) and LandBridge (NYSE:LB – Get Free Report) are both mid-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Institutional & Insider Ownership
24.9% of Kodiak Gas Services shares are owned by institutional investors. 0.6% of Kodiak Gas Services shares are owned by company insiders. Comparatively, 63.3% of LandBridge shares are owned 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.
Analyst Ratings
This is a summary of current ratings for Kodiak Gas Services and LandBridge, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kodiak Gas Services | 0 | 2 | 10 | 0 | 2.83 |
| LandBridge | 1 | 7 | 2 | 0 | 2.10 |
Valuation & Earnings
This table compares Kodiak Gas Services and LandBridge”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kodiak Gas Services | $1.31 billion | 4.93 | $80.52 million | $0.84 | 75.99 |
| LandBridge | $199.09 million | 33.62 | $30.13 million | $1.13 | 76.85 |
Kodiak Gas Services has higher revenue and earnings than LandBridge. Kodiak Gas Services is trading at a lower price-to-earnings ratio than LandBridge, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Kodiak Gas Services and LandBridge’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kodiak Gas Services | 5.77% | 11.92% | 3.70% |
| LandBridge | 16.49% | 4.75% | 2.87% |
Risk & Volatility
Kodiak Gas Services has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, LandBridge has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.
Dividends
Kodiak Gas Services pays an annual dividend of $1.96 per share and has a dividend yield of 3.1%. LandBridge pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. Kodiak Gas Services pays out 233.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LandBridge pays out 42.5% of its earnings in the form of a dividend. Kodiak Gas Services has increased its dividend for 2 consecutive years. Kodiak Gas Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Kodiak Gas Services beats LandBridge on 11 of the 17 factors compared between the two stocks.
About Kodiak Gas Services
Kodiak Gas Services, Inc. operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is headquartered in The Woodlands, 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.
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