Financial Contrast: NextNRG (NASDAQ:NXXT) and Texas Pacific Land (NYSE:TPL)

Texas Pacific Land (NYSE:TPL) and NextNRG (NASDAQ:NXXT) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Texas Pacific Land and NextNRG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Pacific Land	1	2	1	0	2.00
NextNRG	1	1	1	1	2.50

Texas Pacific Land currently has a consensus target price of $639.00, indicating a potential upside of 24.75%. NextNRG has a consensus target price of $5.50, indicating a potential upside of 763.02%. Given NextNRG’s stronger consensus rating and higher probable upside, analysts clearly believe NextNRG is more favorable than Texas Pacific Land.

Insider & Institutional Ownership

59.9% of Texas Pacific Land shares are owned by institutional investors. Comparatively, 10.6% of NextNRG shares are owned by institutional investors. 6.9% of Texas Pacific Land shares are owned by company insiders. Comparatively, 69.1% of NextNRG shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Texas Pacific Land and NextNRG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Pacific Land	$798.19 million	44.24	$481.38 million	$6.98	73.39
NextNRG	$27.77 million	3.08	-$16.19 million	($2.02)	-0.32

Texas Pacific Land has higher revenue and earnings than NextNRG. NextNRG is trading at a lower price-to-earnings ratio than Texas Pacific Land, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Texas Pacific Land and NextNRG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Pacific Land	60.31%	36.18%	32.60%
NextNRG	-85.79%	N/A	-270.09%

Risk & Volatility

Texas Pacific Land has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, NextNRG has a beta of -0.57, meaning that its share price is 157% less volatile than the S&P 500.

Summary

Texas Pacific Land beats NextNRG on 10 of the 14 factors compared between the two stocks.

About Texas Pacific Land

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 4,000 additional net royalty acres, total of approximately 195,000 NRA located in the western part of Texas. The Land and Resource Management segment manages surface acres of land, and oil and gas royalty interest in West Texas. This segment also engages in easements, such as transporting oil, gas and related hydrocarbons, power line and utility, and subsurface wellbore easements. In addition, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche, sand, and other material, as well as sells land. The Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions to operators in the Permian Basin. This segment also holds produced water royalties. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas.

About NextNRG

NextNRG, Inc. engages in the provision of fuel delivery services. It provides app-based interface customers with the ability to select the time and location of their fueling. It offers diesel, red diesel, and REC-90. The company was founded by Yehuda Levy and Michael D. Farkas on March 28, 2019 and is headquartered in Miami, FL.