Wildhorse Resource Development (NYSE: WRD) and Texas Pacific Land Trust (NYSE:TPL) are both oil & gas exploration and production – nec companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.
This is a breakdown of recent ratings and recommmendations for Wildhorse Resource Development and Texas Pacific Land Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wildhorse Resource Development||0||1||11||1||3.00|
|Texas Pacific Land Trust||0||0||0||0||N/A|
This table compares Wildhorse Resource Development and Texas Pacific Land Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wildhorse Resource Development||8.88%||1.24%||0.68%|
|Texas Pacific Land Trust||69.87%||133.04%||84.40%|
Insider & Institutional Ownership
95.7% of Wildhorse Resource Development shares are owned by institutional investors. Comparatively, 39.9% of Texas Pacific Land Trust shares are owned by institutional investors. 2.6% of Wildhorse Resource Development shares are owned by insiders. Comparatively, 0.9% of Texas Pacific Land Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Texas Pacific Land Trust pays an annual dividend of $0.35 per share and has a dividend yield of 0.1%. Wildhorse Resource Development does not pay a dividend. Texas Pacific Land Trust pays out 4.0% of its earnings in the form of a dividend. Texas Pacific Land Trust has raised its dividend for 5 consecutive years.
Valuation & Earnings
This table compares Wildhorse Resource Development and Texas Pacific Land Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wildhorse Resource Development||$127.34 million||14.63||-$47.07 million||$0.45||40.91|
|Texas Pacific Land Trust||$59.94 million||58.42||$37.23 million||$8.73||51.16|
Texas Pacific Land Trust has lower revenue, but higher earnings than Wildhorse Resource Development. Wildhorse Resource Development is trading at a lower price-to-earnings ratio than Texas Pacific Land Trust, indicating that it is currently the more affordable of the two stocks.
Texas Pacific Land Trust beats Wildhorse Resource Development on 9 of the 16 factors compared between the two stocks.
Wildhorse Resource Development Company Profile
WildHorse Resource Development Corporation is a holding company. The Company is an independent oil and natural gas company. The Company is focused on the acquisition, exploitation, exploration and development of oil, natural gas and natural gas liquid (NGL) resources in the United States. Its assets are characterized by concentrated acreage positions in Southeast Texas and North Louisiana with multiple producing stratigraphic horizons, or stacked pay zones, and single-well rates of return. In Southeast Texas, it operates in Burleson, Lee and Washington Counties where it primarily targets the Eagle Ford Shale (Eagle Ford Acreage), which is an active shale trends in North America. In North Louisiana, the Company operates in and around the Terryville Complex, where it primarily targets the overpressured Cotton Valley play (North Louisiana Acreage). The Company’s subsidiaries include WildHorse Resources II, LLC (WildHorse) and Esquisto and Acquisition Co.
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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