Financial Analysis: TXO Partners (NYSE:TXO) & RWE Aktiengesellschaft (OTCMKTS:RWEOY)

TXO Partners (NYSE:TXOGet Free Report) and RWE Aktiengesellschaft (OTCMKTS:RWEOYGet Free Report) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings & Valuation

This table compares TXO Partners and RWE Aktiengesellschaft’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TXO Partners $380.72 million 1.72 -$103.99 million ($5.85) -3.63
RWE Aktiengesellschaft $30.91 billion N/A $1.57 billion $2.63 14.08

RWE Aktiengesellschaft has higher revenue and earnings than TXO Partners. TXO Partners is trading at a lower price-to-earnings ratio than RWE Aktiengesellschaft, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

27.4% of TXO Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

TXO Partners pays an annual dividend of $2.60 per share and has a dividend yield of 12.3%. RWE Aktiengesellschaft pays an annual dividend of $0.75 per share and has a dividend yield of 2.0%. TXO Partners pays out -44.4% of its earnings in the form of a dividend. RWE Aktiengesellschaft pays out 28.5% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and target prices for TXO Partners and RWE Aktiengesellschaft, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TXO Partners 0 0 1 1 3.50
RWE Aktiengesellschaft 0 1 0 0 2.00

TXO Partners presently has a consensus target price of $26.00, suggesting a potential upside of 22.58%. Given TXO Partners’ stronger consensus rating and higher probable upside, analysts clearly believe TXO Partners is more favorable than RWE Aktiengesellschaft.

Profitability

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

Net Margins Return on Equity Return on Assets
TXO Partners -61.27% 7.94% 5.76%
RWE Aktiengesellschaft 6.99% 10.69% 3.38%

Volatility and Risk

TXO Partners has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500. Comparatively, RWE Aktiengesellschaft has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Summary

TXO Partners beats RWE Aktiengesellschaft on 8 of the 15 factors compared between the two stocks.

About TXO Partners

(Get Free Report)

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 RWE Aktiengesellschaft

(Get Free Report)

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.

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