Texas Pacific Land Trust (TPL) & Hugoton Royalty Trust (HGT) Critical Analysis

Texas Pacific Land Trust (NYSE:TPL) and Hugoton Royalty Trust (NYSE:HGT) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Profitability

This table compares Texas Pacific Land Trust and Hugoton Royalty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Texas Pacific Land Trust 130.87% 126.45% 103.18%
Hugoton Royalty Trust N/A N/A N/A

Analyst Ratings

This is a summary of current recommendations for Texas Pacific Land Trust and Hugoton Royalty Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Texas Pacific Land Trust 0 0 0 0 N/A
Hugoton Royalty Trust 0 0 0 0 N/A

Institutional & Insider Ownership

39.7% of Texas Pacific Land Trust shares are owned by institutional investors. Comparatively, 12.2% of Hugoton Royalty Trust shares are owned by institutional investors. 0.9% of Texas Pacific Land Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Texas Pacific Land Trust and Hugoton Royalty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Texas Pacific Land Trust $132.41 million 35.72 $76.36 million N/A N/A
Hugoton Royalty Trust N/A N/A N/A N/A N/A

Texas Pacific Land Trust has higher revenue and earnings than Hugoton Royalty Trust.

Dividends

Texas Pacific Land Trust pays an annual dividend of $1.05 per share and has a dividend yield of 0.2%. Hugoton Royalty Trust pays an annual dividend of $0.04 per share and has a dividend yield of 9.1%. Texas Pacific Land Trust has raised its dividend for 6 consecutive years.

Summary

Texas Pacific Land Trust beats Hugoton Royalty Trust on 7 of the 8 factors compared between the two stocks.

About Texas Pacific Land Trust

Texas Pacific Land Trust holds title to tracts of land in the state of Texas. The company operates through two segments, Land and Resource Management, and Water Service and Operations. It sells, leases, and manages these lands for the benefit of the holders of Certificates of Proprietary Interest in the Trust. The company has oil, gas, and water royalties interests; enters into easement contracts covering activities, such as oil and gas pipelines and subsurface wellbore easements; sells water and land; and leases land. As of December 31, 2017, it owned the surface estate in 887,698 acres of land comprising various separate tracts located in 18 counties in the western part of Texas; and grazing leases covering approximately 862,800 acres of the Trust's land. The company also owns a 1/128 nonparticipating perpetual oil and gas royalty interest under 85,414 acres of land, as well as a 1/16 nonparticipating perpetual oil and gas royalty interest under 373,777 acres of land in the western part of Texas. Texas Pacific Land Trust was founded in 1888 and is headquartered in Dallas, Texas.

About Hugoton Royalty Trust

Hugoton Royalty Trust holds working interests in certain gas-producing properties in Kansas, Oklahoma, and Wyoming. The company was founded in 1998 and is based in Fort Worth, Texas.

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