LandBridge (NYSE:LB) versus ProFrac (NASDAQ:ACDC) Critical Survey

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

Analyst Recommendations

This is a summary of current recommendations and price targets for ProFrac and LandBridge, as provided by MarketBeat.com.

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

ProFrac presently has a consensus price target of $5.25, indicating a potential upside of 20.97%. LandBridge has a consensus price target of $81.67, indicating a potential upside of 0.56%. Given ProFrac’s higher probable upside, analysts plainly believe ProFrac is more favorable than LandBridge.

Institutional & Insider Ownership

12.8% of ProFrac shares are held by institutional investors. 2.2% of ProFrac shares are held by company insiders. Comparatively, 61.2% of LandBridge shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

ProFrac has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, LandBridge has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ProFrac	-22.83%	-45.18%	-13.61%
LandBridge	16.49%	4.75%	2.87%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProFrac	$1.94 billion	0.41	-$369.00 million	($2.33)	-1.86
LandBridge	$199.09 million	31.44	$30.13 million	$1.13	71.87

LandBridge has lower revenue, but higher earnings 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 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.

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.