Texas Pacific Land (NYSE:TPL – Get Free Report) and Yankuang Energy Group (OTCMKTS:YZCAY – Get Free Report) are both large-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.
Risk & Volatility
Texas Pacific Land has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Yankuang Energy Group has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.
Profitability
This table compares Texas Pacific Land and Yankuang Energy Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Texas Pacific Land | 60.03% | 35.52% | 31.95% |
| Yankuang Energy Group | N/A | N/A | N/A |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Texas Pacific Land | $798.19 million | 37.48 | $481.38 million | $7.30 | 59.43 |
| Yankuang Energy Group | $18.55 billion | 0.74 | $1.19 billion | $1.77 | 8.02 |
Yankuang Energy Group has higher revenue and earnings than Texas Pacific Land. Yankuang Energy Group is trading at a lower price-to-earnings ratio than Texas Pacific Land, indicating that it is currently the more affordable of the two stocks.
Dividends
Texas Pacific Land pays an annual dividend of $2.40 per share and has a dividend yield of 0.6%. Yankuang Energy Group pays an annual dividend of $0.74 per share and has a dividend yield of 5.2%. Texas Pacific Land pays out 32.9% of its earnings in the form of a dividend. Yankuang Energy Group pays out 41.8% 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 raised its dividend for 3 consecutive years.
Institutional & Insider Ownership
59.9% of Texas Pacific Land shares are held by institutional investors. 6.9% of Texas Pacific Land shares are held by company 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.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Texas Pacific Land and Yankuang Energy Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Texas Pacific Land | 1 | 2 | 1 | 0 | 2.00 |
| Yankuang Energy Group | 0 | 0 | 0 | 1 | 4.00 |
Texas Pacific Land currently has a consensus target price of $639.00, indicating a potential upside of 47.30%. Given Texas Pacific Land’s higher probable upside, equities research analysts clearly believe Texas Pacific Land is more favorable than Yankuang Energy Group.
Summary
Texas Pacific Land beats Yankuang Energy Group on 13 of the 18 factors compared between the two stocks.
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 Yankuang Energy Group
Yankuang Energy Group Company Limited engages in the mining, preparation, and sale of coal in China and internationally. It offers thermal, PCI, and coking coal for electric power, metallurgy, chemical industry, etc.; manufactures, installs, and sells mining equipment and machinery; manufactures and sells coal mining and excavating equipment, cable, and rubber products; manufactures and sells methanol, acetic acid, ethyl acetate, caprolactam, naphtha, crude liquid wax, etc.; produces and sells chemicals and synthesis catalyst; explores for potash mineral; and sells coal mine machinery equipment and accessories, construction materials, petroleum products, and mineral products. The company also provides electricity and related heat supply; railway, river, and lakes transportation; coal mining technology development, transfer, and consultation; underground mines and coal mine management; supply chain management; factoring; engineering; water pollution control; equity investment fund and corporate asset management, investment advisory and corporate management, foreign investment fund, and trading services; solar and wind power, and production management; and financial services, as well as operates as a trade broker and agent. In addition, it engages in the processing, sale, and transportation of coal; coal resource exploration development; LTCC technology development and equipment rental activities; house and financial leasing; wholesale of coal and non-ferrous metals; real estate development and operation, and property management; investment and management of mineral resources; and logistics storage and leasing activities. The company was formerly known as Yanzhou Coal Mining Company Limited and changed its name to Yankuang Energy Group Company Limited in December 2021. The company was founded in 1973 and is based in Zoucheng, the People's Republic of China. Yankuang Energy Group Company Limited is a subsidiary of Shandong Energy Group Co.,Ltd.
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