Reviewing Texas Pacific Land (NYSE:TPL) and GE Vernova (NYSE:GEV)

Texas Pacific Land (NYSE:TPL) and GE Vernova (NYSE:GEV) are both large-cap 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.

Profitability

This table compares Texas Pacific Land and GE Vernova’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Pacific Land	62.16%	39.47%	35.65%
GE Vernova	3.16%	13.23%	2.60%

Risk and Volatility

Texas Pacific Land has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, GE Vernova has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.

Insider and Institutional Ownership

59.9% of Texas Pacific Land shares are owned by institutional investors. 6.5% of Texas Pacific Land shares are owned by insiders. Comparatively, 0.2% of GE Vernova shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Texas Pacific Land pays an annual dividend of $6.40 per share and has a dividend yield of 0.7%. GE Vernova pays an annual dividend of $1.00 per share and has a dividend yield of 0.2%. Texas Pacific Land pays out 31.9% of its earnings in the form of a dividend. GE Vernova pays out 24.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Texas Pacific Land has increased its dividend for 3 consecutive years. Texas Pacific Land is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Texas Pacific Land and GE Vernova”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Pacific Land	$705.82 million	28.67	$453.96 million	$20.06	43.88
GE Vernova	$34.94 billion	5.02	$1.55 billion	$4.15	155.10

GE Vernova has higher revenue and earnings than Texas Pacific Land. Texas Pacific Land is trading at a lower price-to-earnings ratio than GE Vernova, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Texas Pacific Land and GE Vernova, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Pacific Land	0	0	0	0	0.00
GE Vernova	0	9	20	4	2.85

GE Vernova has a consensus price target of $592.35, indicating a potential downside of 7.97%. Given GE Vernova’s stronger consensus rating and higher probable upside, analysts plainly believe GE Vernova is more favorable than Texas Pacific Land.

About Texas Pacific Land

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 4,000 additional net royalty acres, total of approximately 195,000 NRA located in the western part of Texas. The Land and Resource Management segment manages surface acres of land, and oil and gas royalty interest in West Texas. This segment also engages in easements, such as transporting oil, gas and related hydrocarbons, power line and utility, and subsurface wellbore easements. In addition, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche, sand, and other material, as well as sells land. The Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions to operators in the Permian Basin. This segment also holds produced water royalties. Texas Pacific Land Corporation was founded in 1888 and is headquartered in Dallas, Texas.

About GE Vernova

GE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions. The company was incorporated in 2023 and is based in Cambridge, Massachusetts.