Energen (NYSE: EGN) and Texas Pacific Land Trust (NYSE:TPL) are both mid-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Institutional & Insider Ownership
96.4% of Energen shares are held by institutional investors. Comparatively, 39.7% of Texas Pacific Land Trust shares are held by institutional investors. 1.0% of Energen shares are held by company insiders. Comparatively, 0.9% of Texas Pacific Land Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of recent ratings and recommmendations for Energen and Texas Pacific Land Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Texas Pacific Land Trust||0||0||0||0||N/A|
Energen currently has a consensus price target of $66.32, suggesting a potential upside of 32.50%. Given Energen’s higher probable upside, research analysts clearly believe Energen is more favorable than Texas Pacific Land Trust.
Earnings and Valuation
This table compares Energen and Texas Pacific Land Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Energen||$532.89 million||9.13||-$167.51 million||($0.11)||-455.00|
|Texas Pacific Land Trust||$132.41 million||29.21||$76.36 million||$9.71||50.81|
Texas Pacific Land Trust has lower revenue, but higher earnings than Energen. Energen is trading at a lower price-to-earnings ratio than Texas Pacific Land Trust, indicating that it is currently the more affordable of the two stocks.
Texas Pacific Land Trust pays an annual dividend of $0.35 per share and has a dividend yield of 0.1%. Energen does not pay a dividend. Texas Pacific Land Trust pays out 3.6% of its earnings in the form of a dividend. Texas Pacific Land Trust has increased its dividend for 6 consecutive years.
This table compares Energen and Texas Pacific Land Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Texas Pacific Land Trust||63.97%||152.03%||91.85%|
Risk & Volatility
Energen has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, Texas Pacific Land Trust has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.
Texas Pacific Land Trust beats Energen on 9 of the 16 factors compared between the two stocks.
Energen Corporation is an oil and natural gas exploration and production company. The Company is engaged in the exploration, development and production of oil and natural gas properties and natural gas. Its operations are conducted through subsidiary, Energen Resources Corporation and occur within the Midland Basin, the Delaware Basin and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. The Company is focused on increasing its oil, natural gas liquids and natural gas production and proved reserves through active development and/or exploratory programs in the Permian Basin. As of December 31, 2016, oil, natural gas liquids and natural gas represented approximately 60%, 20% and 20% of its reserves. As of December 31, 2016, its development activities added approximately 327 million barrels of oil equivalent (MMBOE) of reserves from the drilling of 623 gross development, exploratory and service wells and 73 well recompletions and pay-adds.
About Texas Pacific Land Trust
Texas Pacific Land Trust (the Trust) is engaged in managing land, including royalty interests, for the benefit of its owners. The Company operates through managing the land segment, which includes sales and leases of such land, and the retention of oil and gas royalties. The Trust derives revenue from all avenues of managing the land, such as oil and gas royalties, grazing leases, easements, sundry and specialty leases, and land sales. The Trust has a perpetual oil and gas royalty interest in 459,200 acres. As of December 31, 2016, the Trust owned the surface estate in approximately 887,553 acres of land, consisting of numerous separate tracts, located in 18 counties in the western part of Texas. As of December 31, 2016, the Trust also owned a 1/128 nonparticipating perpetual oil and gas royalty interest under 85,414 acres of land and a 1/16 nonparticipating perpetual oil and gas royalty interest under 373,777 acres of land in the western part of Texas.
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