EROK vs TPL: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of November 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: TPL is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. EROK and TPL share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined EROK and TPL exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

EagleRock Land does not drill. It owns the ground other companies drill on: roughly ~236,000 surface acres across the Delaware and Midland sub-basins, plus about ~70,000 acres tied to water infrastructure assets. Operators pay it for surface use, easements and rights of way, for road and pipeline construction on its land, for caliche and topsoil used to build pads and lease roads, and for water on both ends of the well cycle (fresh and brackish supply going in, produced water gathered, recycled or disposed going out). It also holds oil and gas royalty interests under some of that acreage. The customer list reads like a roll call of the basin: Chevron, ConocoPhillips, ExxonMobil, Occidental, Devon, Diamondback, EOG Resources, Matador, Permian Resources and Double Eagle. The company was formed in 2023 and backed by EnCap Investments and TCW Group before listing.

Full EROK guide

Texas Pacific Land Corporation owns roughly 880,000 surface acres across West Texas, most of it sitting on the Permian Basin, along with oil and gas royalty interests under about 195,000 net royalty acres. It drills nothing and operates no wells. Large operators including Chevron, ConocoPhillips and Exxon do the drilling on its land, and TPL collects a royalty on the production plus fees for pipeline easements, surface leases, road use, and materials. A second segment, Texas Pacific Water Resources, sells brackish source water for completions and earns royalties on produced water disposed of on TPL acreage. In the second quarter of 2026, oil and gas royalties brought in ~$145.6 million, water sales ~$39.7 million, produced water royalties ~$37.1 million, and easements and other surface income ~$23.7 million.

Full TPL guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• EROK drivers: Acreage operators cannot route around; Water on both ends of the well.
• TPL drivers: Royalty volumes on other people's capital; Water: source, produced water royalties, and desalination.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. A useful test is which set of risks you could hold through a drawdown: The valuation is the first-order risk: roughly ~22 times trailing revenue on a ~$2.4B market capitalisation leaves little room for a slower Permian year, and the trailing GAAP result is still a loss (Q2 2026 alone lost ~$37.5M, mostly from IPO-related share-based compensation). For TPL, the valuation is the dominant risk: at roughly 27 times sales and around 45 times trailing earnings as of October 2026, TPL is priced far above producers and mineral peers, so a slowdown in Permian activity gets amplified in the stock rather than cushioned.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick EROK if you believe its drivers more; TPL if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the EROK and TPL guides.

EROK. The headline numbers still point in different directions: the business converts most of its revenue into Adjusted EBITDA and free cash flow, while the GAAP line shows a loss because IPO-related share-based compensation (~$57.4M in Q2 2026) and pre-IPO structure sit inside the reported figures. At about $17.95 on October 16, 2026 the stock trades near ~22 times trailing revenue and roughly 18 times the midpoint of 2026 normalized EBITDA guidance, down from ~41 times revenue in August. The six analysts covering it carry an average twelve-month target of about ~$28, and Q3 results arrive October 29, 2026.

TPL. At ~$348.58 on October 16, 2026, TPL trades at roughly 27 times trailing sales and around 45 times trailing earnings, or about 38 times the ~$9.24 analysts expect for full-year 2026, far above any Permian producer. The defense of that multiple is the margin structure and the balance sheet: ~78% operating margins, ~60% net margins, ~$249 million of cash against ~$18 million of debt, and cash flow that arrives without TPL spending on drilling. The case against it is that royalty revenue still swings with commodity prices, and the stock's ~17% slide over the past three months shows the multiple is not immune to a softer oil tape.

Headline figures (approximate, October 2026): EROK shows revenue (ttm) ~$106M; Q2 2026 ~$41.5M (Q1 ~$23.1M), adjusted ebitda (q2 2026) ~$29.8M (~72% margin); ~$36.2M normalized (~77.5%), net income (q2 2026) ~-$37.5M (~-$0.29 per Class A share), incl. ~$57.4M IPO stock comp, 2026 normalized ebitda guidance ~$129M to ~$133M; TPL shows revenue (ttm) ~$898M, q2 2026 revenue ~$246M (+31% YoY), margins (ttm) ~78% operating, ~60% net, net income (ttm) ~$541M (~$7.75 EPS).

EROK and TPL are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined EROK and TPL exposure against your real portfolio. It is not an investment adviser.