TXO Partners (NYSE:TXO – Get Free Report) and Chevron (NYSE:CVX – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.
Dividends
TXO Partners pays an annual dividend of $1.60 per share and has a dividend yield of 10.9%. Chevron pays an annual dividend of $7.12 per share and has a dividend yield of 3.4%. TXO Partners pays out -207.8% of its earnings in the form of a dividend. Chevron pays out 68.3% 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. TXO Partners has raised its dividend for 1 consecutive years and Chevron has raised its dividend for 38 consecutive years. TXO Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent ratings and recommmendations for TXO Partners and Chevron, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TXO Partners | 1 | 0 | 1 | 2 | 3.00 |
| Chevron | 1 | 5 | 20 | 0 | 2.73 |
Volatility & Risk
TXO Partners has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500. Comparatively, Chevron has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.
Institutional & Insider Ownership
27.4% of TXO Partners shares are owned by institutional investors. Comparatively, 72.4% of Chevron shares are owned by institutional investors. 0.6% of Chevron shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares TXO Partners and Chevron’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TXO Partners | -9.23% | -5.59% | -2.83% |
| Chevron | 9.57% | 11.09% | 6.54% |
Earnings and Valuation
This table compares TXO Partners and Chevron”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TXO Partners | $401.01 million | 2.03 | -$21.62 million | ($0.77) | -19.02 |
| Chevron | $189.03 billion | 2.21 | $12.30 billion | $10.43 | 20.28 |
Chevron has higher revenue and earnings than TXO Partners. TXO Partners is trading at a lower price-to-earnings ratio than Chevron, indicating that it is currently the more affordable of the two stocks.
Summary
Chevron beats TXO Partners on 13 of the 18 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 Chevron
Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant. The Downstream segment refines crude oil into petroleum products; markets crude oil, refined products, and lubricants; manufactures and markets renewable fuels, commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives; and transports crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.
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