Texas Pacific Land (NYSE:TPL) & Expand Energy (NASDAQ:EXE) Head-To-Head Survey

Expand Energy (NASDAQ:EXE) and Texas Pacific Land (NYSE:TPL) are both large-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

97.9% of Expand Energy shares are held by institutional investors. Comparatively, 59.9% of Texas Pacific Land shares are held by institutional investors. 0.2% of Expand Energy shares are held by company insiders. Comparatively, 6.9% of Texas Pacific Land shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Expand Energy and Texas Pacific Land, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expand Energy	0	4	13	2	2.89
Texas Pacific Land	1	1	1	1	2.50

Expand Energy currently has a consensus price target of $132.09, suggesting a potential upside of 32.41%. Texas Pacific Land has a consensus price target of $639.00, suggesting a potential upside of 48.34%. Given Texas Pacific Land’s higher probable upside, analysts plainly believe Texas Pacific Land is more favorable than Expand Energy.

Risk & Volatility

Expand Energy has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Texas Pacific Land has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Expand Energy	22.53%	10.26%	6.73%
Texas Pacific Land	60.31%	36.18%	32.60%

Valuation and Earnings

This table compares Expand Energy and Texas Pacific Land”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expand Energy	$12.12 billion	1.97	$1.82 billion	$13.41	7.44
Texas Pacific Land	$798.19 million	37.21	$481.38 million	$6.98	61.72

Expand Energy has higher revenue and earnings than Texas Pacific Land. Expand Energy 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.

Dividends

Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.3%. Texas Pacific Land pays an annual dividend of $2.40 per share and has a dividend yield of 0.6%. Expand Energy pays out 17.2% of its earnings in the form of a dividend. Texas Pacific Land pays out 34.4% 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. Texas Pacific Land has increased its dividend for 3 consecutive years. Expand Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

About Expand Energy

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.

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.