LandBridge (NYSE:LB – Get Free Report) and TechnipFMC (NYSE:FTI – Get Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.
Institutional and Insider Ownership
96.6% of TechnipFMC shares are held by institutional investors. 63.3% of LandBridge shares are held by company insiders. Comparatively, 1.4% of TechnipFMC 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.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for LandBridge and TechnipFMC, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LandBridge | 1 | 7 | 2 | 0 | 2.10 |
| TechnipFMC | 0 | 3 | 12 | 1 | 2.88 |
Valuation & Earnings
This table compares LandBridge and TechnipFMC”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LandBridge | $199.09 million | 31.65 | $30.13 million | $1.13 | 72.35 |
| TechnipFMC | $10.42 billion | 2.67 | $963.90 million | $2.88 | 24.66 |
TechnipFMC has higher revenue and earnings than LandBridge. TechnipFMC 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 LandBridge and TechnipFMC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LandBridge | 16.49% | 4.75% | 2.87% |
| TechnipFMC | 11.28% | 36.54% | 12.02% |
Dividends
LandBridge pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. TechnipFMC pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. LandBridge pays out 42.5% of its earnings in the form of a dividend. TechnipFMC pays out 6.9% 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. TechnipFMC has raised its dividend for 1 consecutive years.
Volatility and Risk
LandBridge has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, TechnipFMC has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Summary
TechnipFMC beats LandBridge on 12 of the 18 factors compared between the two stocks.
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.
About TechnipFMC
TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.
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