Analyzing Texas Pacific Land Trust (TPL) and Its Competitors

Texas Pacific Land Trust (NYSE: TPL) is one of 246 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its rivals? We will compare Texas Pacific Land Trust to similar companies based on the strength of its dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Volatility and Risk

Texas Pacific Land Trust has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Texas Pacific Land Trust’s rivals have a beta of 1.42, suggesting that their average share price is 42% more volatile than the S&P 500.

Profitability

This table compares Texas Pacific Land Trust and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Texas Pacific Land Trust 69.87% 148.35% 98.03%
Texas Pacific Land Trust Competitors -432.24% -1.15% 2.03%

Insider and Institutional Ownership

39.5% of Texas Pacific Land Trust shares are owned by institutional investors. Comparatively, 61.8% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 0.9% of Texas Pacific Land Trust shares are owned by insiders. Comparatively, 12.2% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Texas Pacific Land Trust pays an annual dividend of $0.35 per share and has a dividend yield of 0.1%. Texas Pacific Land Trust pays out 4.0% of its earnings in the form of a dividend. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.7% and pay out 240.0% of their earnings in the form of a dividend. Texas Pacific Land Trust has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of current ratings and price targets for Texas Pacific Land Trust and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Texas Pacific Land Trust 0 0 0 0 N/A
Texas Pacific Land Trust Competitors 1448 7499 12157 258 2.53

As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 33.70%. Given Texas Pacific Land Trust’s rivals higher probable upside, analysts clearly believe Texas Pacific Land Trust has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Texas Pacific Land Trust and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Texas Pacific Land Trust $81.79 million $76.13 million 46.65
Texas Pacific Land Trust Competitors $1.40 billion $601.51 million -1.05

Texas Pacific Land Trust’s rivals have higher revenue and earnings than Texas Pacific Land Trust. Texas Pacific Land Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Texas Pacific Land Trust rivals beat Texas Pacific Land Trust on 7 of the 12 factors compared.

Texas Pacific Land Trust Company Profile

Texas Pacific Land Trust (the Trust) is engaged in managing land, including royalty interests, for the benefit of its owners. The Company operates through managing the land segment, which includes sales and leases of such land, and the retention of oil and gas royalties. The Trust derives revenue from all avenues of managing the land, such as oil and gas royalties, grazing leases, easements, sundry and specialty leases, and land sales. The Trust has a perpetual oil and gas royalty interest in 459,200 acres. As of December 31, 2016, the Trust owned the surface estate in approximately 887,553 acres of land, consisting of numerous separate tracts, located in 18 counties in the western part of Texas. As of December 31, 2016, the Trust also owned a 1/128 nonparticipating perpetual oil and gas royalty interest under 85,414 acres of land and a 1/16 nonparticipating perpetual oil and gas royalty interest under 373,777 acres of land in the western part of Texas.

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