Reviewing Select Water Solutions (NYSE:WTTR) & LandBridge (NYSE:LB)

LandBridge (NYSE:LB) and Select Water Solutions (NYSE:WTTR) are both mid-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Volatility & Risk

LandBridge has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500. Comparatively, Select Water Solutions has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Institutional & Insider Ownership

81.7% of Select Water Solutions shares are owned by institutional investors. 63.3% of LandBridge shares are owned by company insiders. Comparatively, 6.2% of Select Water Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

LandBridge pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. Select Water Solutions pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. LandBridge pays out 42.5% of its earnings in the form of a dividend. Select Water Solutions pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Select Water Solutions has increased its dividend for 2 consecutive years. Select Water Solutions is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$199.09 million	33.62	$30.13 million	$1.13	76.85
Select Water Solutions	$1.41 billion	2.03	$21.22 million	$0.28	73.78

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

Profitability

This table compares LandBridge and Select Water Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LandBridge	16.49%	4.75%	2.87%
Select Water Solutions	2.24%	3.11%	1.92%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for LandBridge and Select Water Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LandBridge	1	7	2	0	2.10
Select Water Solutions	0	3	6	0	2.67

LandBridge presently has a consensus price target of $81.67, suggesting a potential downside of 5.96%. Select Water Solutions has a consensus price target of $23.00, suggesting a potential upside of 11.33%. Given Select Water Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Select Water Solutions is more favorable than LandBridge.

Summary

LandBridge beats Select Water Solutions on 9 of the 17 factors compared between the two stocks.

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.

About Select Water Solutions

Select Water Solutions, Inc., together with its subsidiaries, provides water management and chemical solutions to the energy industry in the United States. The company operates through three segments: Water Services, Water Infrastructure, and Chemical Technologies. The Water Services segment provides water-related services, including water sourcing, water transfer, flowback and well testing, water containment, fluids hauling, water monitoring, and water network automation; technology solutions comprising hydrographic mapping, water volume and quality monitoring, remote pit and tank monitoring, leak detection, asset and fuel tracking, and automated-equipment services, as well as various surface rental equipment and workforce accommodation services. The Water Infrastructure segment engages in the recycling, gathering, transferring, and disposal of water through a network of permanent pipeline infrastructure, semi-permanent pipeline infrastructure, water recycling facilities, earthen pits, water sources, and SWDs; provides solids management services; and develops, builds, and operates semi-permanent and permanent infrastructure solutions. The Chemical Technologies segment provides technical solutions, products, and services related to chemical applications in the oil and gas industry. This segment develops, manufactures, and manages logistics; and provides chemicals used in hydraulic fracturing, stimulation, cementing, and well completions for pressure pumpers and oil and gas producers, as well as offers production chemical solutions for underperforming wells, corrosion and scale monitoring, chemical inventory management, well failure analysis, and lab services. It primarily serves oil and gas producers. The company was formerly known as Select Energy Services, Inc. and changed its name to Select Water Solutions, Inc. in May 2023. Select Water Solutions, Inc. was incorporated in 2016 and is headquartered in Houston, Texas.