Contrasting ProFrac (NASDAQ:ACDC) and LandBridge (NYSE:LB)

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

Volatility & Risk

LandBridge has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, ProFrac has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Institutional and Insider Ownership

12.8% of ProFrac shares are owned by institutional investors. 61.2% of LandBridge shares are owned by insiders. Comparatively, 2.2% of ProFrac 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.

Analyst Ratings

This is a summary of current ratings for LandBridge and ProFrac, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LandBridge	1	7	2	0	2.10
ProFrac	2	2	1	0	1.80

LandBridge currently has a consensus price target of $81.67, indicating a potential downside of 2.22%. ProFrac has a consensus price target of $5.25, indicating a potential upside of 14.63%. Given ProFrac’s higher probable upside, analysts clearly believe ProFrac is more favorable than LandBridge.

Profitability

This table compares LandBridge and ProFrac’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%
ProFrac	-22.83%	-45.18%	-13.61%

Valuation & Earnings

This table compares LandBridge and ProFrac”s top-line revenue, earnings per share (EPS) 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
ProFrac	$1.94 billion	0.43	-$369.00 million	($2.33)	-1.97

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

Summary

LandBridge beats ProFrac on 10 of the 14 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 ProFrac

ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company offers hydraulic fracturing, well stimulation, in-basin frac sand, and other completion services and complementary products and services to upstream oil and natural gas companies engaged in the exploration and production of unconventional oil and natural gas resources. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends. ProFrac Holding Corp. was founded in 2016 and is headquartered in Willow Park, Texas.