Analyzing LandBridge (NYSE:LB) & Sable Offshore (NYSE:SOC)

Sable Offshore (NYSE:SOC) and LandBridge (NYSE:LB) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Profitability

This table compares Sable Offshore and LandBridge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sable Offshore	N/A	-86.58%	-19.23%
LandBridge	13.72%	4.63%	2.91%

Institutional & Insider Ownership

26.2% of Sable Offshore shares are owned by institutional investors. 36.4% of Sable Offshore shares are owned by insiders. Comparatively, 70.4% of LandBridge shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Sable Offshore and LandBridge”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sable Offshore	N/A	N/A	-$629.07 million	($3.26)	-3.28
LandBridge	$109.95 million	36.87	-$41.77 million	$0.70	74.38

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sable Offshore and LandBridge, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	2	0	5	0	2.43
LandBridge	1	5	3	1	2.40

Sable Offshore currently has a consensus price target of $19.60, suggesting a potential upside of 83.49%. LandBridge has a consensus price target of $73.33, suggesting a potential upside of 40.85%. Given Sable Offshore’s stronger consensus rating and higher possible upside, equities analysts plainly believe Sable Offshore is more favorable than LandBridge.

Risk and Volatility

Sable Offshore has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, LandBridge has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Summary

LandBridge beats Sable Offshore on 10 of the 14 factors compared between the two stocks.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.

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.