Contrasting LandBridge (NYSE:LB) & TechnipFMC (NYSE:FTI)

LandBridge (NYSE:LB) and TechnipFMC (NYSE:FTI) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

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%

Volatility and Risk

LandBridge has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, TechnipFMC has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for LandBridge and TechnipFMC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LandBridge	1	7	2	0	2.10
TechnipFMC	0	3	12	0	2.80

LandBridge presently has a consensus target price of $81.67, suggesting a potential downside of 2.22%. TechnipFMC has a consensus target price of $72.08, suggesting a potential upside of 4.71%. Given TechnipFMC’s stronger consensus rating and higher probable upside, analysts plainly believe TechnipFMC is more favorable than LandBridge.

Valuation and Earnings

This table compares LandBridge and TechnipFMC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$199.09 million	32.33	$30.13 million	$1.13	73.91
TechnipFMC	$9.93 billion	2.72	$963.90 million	$2.88	23.90

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.

Insider & Institutional Ownership

96.6% of TechnipFMC shares are owned by institutional investors. 61.2% of LandBridge shares are owned by company insiders. Comparatively, 1.4% of TechnipFMC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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 increased its dividend for 1 consecutive years.

Summary

TechnipFMC beats LandBridge on 12 of the 17 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.