Analyzing Berry (NASDAQ:BRY) & LandBridge (NYSE:LB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Berry	0.60%	5.27%	2.48%
LandBridge	12.19%	5.63%	3.46%

Dividends

Berry pays an annual dividend of $0.12 per share and has a dividend yield of 3.6%. LandBridge pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. Berry pays out 171.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LandBridge pays out 11.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Berry and LandBridge, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Berry	0	1	1	0	2.50
LandBridge	1	2	4	0	2.43

Berry presently has a consensus price target of $4.00, indicating a potential upside of 20.85%. LandBridge has a consensus price target of $67.00, indicating a potential upside of 25.52%. Given LandBridge’s higher possible upside, analysts plainly believe LandBridge is more favorable than Berry.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Berry	$776.50 million	0.33	$19.25 million	$0.07	47.29
LandBridge	$109.95 million	37.16	-$41.77 million	$3.56	14.99

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

Institutional & Insider Ownership

94.9% of Berry shares are owned by institutional investors. 2.0% of Berry shares are owned by company insiders. Comparatively, 70.4% of LandBridge shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Berry has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, LandBridge has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Summary

LandBridge beats Berry on 9 of the 16 factors compared between the two stocks.

About Berry

Berry Petroleum Company, LLC., formerly Berry Petroleum Company, is an independent energy company. The Company is engaged in the production, development, exploitation, and acquisition of oil and natural gas. The Company’s principal reserves and producing properties are located in California (South Midway-Sunset (SMWSS)-Steam Floods, North Midway-Sunset (NMWSS)-Diatomite, NMWSS-New Steam Floods, Texas (Permian and E. Texas), Utah (Uinta) and Colorado (Piceance). The Company’s operations are conducted in the continental United States. In December 2013, Linn Energy LLC and Linn Co, LLC (Linn Co) announced the completion of the merger between LinnCo and Berry Petroleum Company (Berry), where LinnCo had acquired all of Berry’s interest.

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.