Financial Comparison: NOV (NYSE:NOV) and LandBridge (NYSE:LB)

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

Insider & Institutional Ownership

93.3% of NOV shares are owned by institutional investors. 63.3% of LandBridge shares are owned by company insiders. Comparatively, 1.1% of NOV shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares LandBridge and NOV”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$199.09 million	33.68	$30.13 million	$1.13	76.99
NOV	$8.74 billion	0.82	$145.00 million	$0.26	77.76

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

Risk & Volatility

LandBridge has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, NOV has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Profitability

This table compares LandBridge and NOV’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%
NOV	1.10%	3.44%	1.94%

Analyst Recommendations

This is a breakdown of current ratings and target prices for LandBridge and NOV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LandBridge	1	7	2	0	2.10
NOV	2	9	5	0	2.19

LandBridge currently has a consensus target price of $81.67, indicating a potential downside of 6.13%. NOV has a consensus target price of $21.31, indicating a potential upside of 5.39%. Given NOV’s stronger consensus rating and higher probable upside, analysts plainly believe NOV is more favorable than LandBridge.

Dividends

LandBridge pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. NOV pays an annual dividend of $0.36 per share and has a dividend yield of 1.8%. LandBridge pays out 42.5% of its earnings in the form of a dividend. NOV pays out 138.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NOV has raised its dividend for 1 consecutive years. NOV is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

NOV beats LandBridge on 10 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 NOV

NOV Inc. designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, and industrial and renewable energy sectors in the United States and internationally. It operates through two segments, Energy Equipment, and Energy Products and Services. The company provides solids control and waste management equipment and services, managed pressure drilling, drilling fluids, premium drillpipe, wired pipe, drilling optimization services, tubular inspection and coating services, instrumentation, downhole tools, and drill bits. It also offers equipment and technologies for hydraulic fracture stimulation, including downhole multistage fracturing tools, pressure pumping trucks, blenders, sanders, hydration and injection units, flowline, and manifolds; coiled tubing units, and wireline units and tools; connections and liner hangers; onshore production consists of composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and offshore production, such as floating production systems and subsea production technologies, as well as manufactures industrial pumps and mixers. In addition, the company provides substructures, derricks, and masts; cranes; jacking systems; pipe lifting, racking, rotating, and assembly systems; mud pumps; pressure control equipment; drives and generators; rig instrumentation and control systems; mooring, anchor, and deck handling machinery; equipment components for offshore wind construction vessels; and pipelay and construction systems. Further, the company offers spare parts, repair, and rentals as well as comprehensive remote equipment monitoring, technical support, field service, and customer training. The company was formerly known as National Oilwell Varco, Inc. and changed its name to NOV Inc. in January 2021. NOV Inc. was founded in 1862 and is based in Houston, Texas.