Contrasting TXO Partners (NYSE:TXO) & Royale Energy (OTCMKTS:ROYL)

TXO Partners (NYSE:TXO) and Royale Energy (OTCMKTS:ROYL) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Valuation & Earnings

This table compares TXO Partners and Royale Energy’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$380.72 million	1.51	-$103.99 million	($3.32)	-5.65
Royale Energy	$2.16 million	1.80	-$1.83 million	N/A	N/A

Royale Energy has lower revenue, but higher earnings than TXO Partners.

Institutional & Insider Ownership

27.4% of TXO Partners shares are owned by institutional investors. 61.8% of Royale Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares TXO Partners and Royale Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TXO Partners	-27.31%	6.89%	5.16%
Royale Energy	N/A	N/A	N/A

Risk and Volatility

TXO Partners has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500. Comparatively, Royale Energy has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for TXO Partners and Royale Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	1	1	3.50
Royale Energy	0	0	0	0	N/A

TXO Partners currently has a consensus target price of $26.00, suggesting a potential upside of 38.67%. Given TXO Partners’ higher possible upside, research analysts plainly believe TXO Partners is more favorable than Royale Energy.

Summary

TXO Partners beats Royale Energy on 7 of the 12 factors compared between the two stocks.

About TXO Partners

TXO Partners, L.P., an oil and natural gas company, focuses on the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid reserves in North America. Its acreage positions are concentrated in the Permian Basin of West Texas and New Mexico and the San Juan Basin of New Mexico and Colorado. The company was formerly known as TXO Energy Partners, L.P. and changed its name to TXO Partners, L.P. in May 2023. TXO Partners, L.P. was incorporated in 2012 and is based in Fort Worth, Texas.

About Royale Energy

Royale Energy, Inc. acquires, explores for, develops, produces, and sells oil and natural gas properties in the United States. Its principal operations are located in the Sacramento Basin and San Joaquin Basin in California, as well as in Utah, Texas, Oklahoma, Louisiana, and Colorado. Royale Energy, Inc. was incorporated in 1986 and is based in El Cajon, California.