Analyzing TXO Partners (NYSE:TXO) & XPLR Infrastructure (NYSE:XIFR)

TXO Partners (NYSE:TXO) and XPLR Infrastructure (NYSE:XIFR) are both small-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

27.4% of TXO Partners shares are held by institutional investors. Comparatively, 66.0% of XPLR Infrastructure shares are held by institutional investors. 0.2% of XPLR Infrastructure shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXO Partners	5.22%	3.89%	2.41%
XPLR Infrastructure	-14.10%	1.64%	1.03%

Volatility and Risk

TXO Partners has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, XPLR Infrastructure has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Valuation and Earnings

This table compares TXO Partners and XPLR Infrastructure”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$282.81 million	2.33	$23.50 million	$0.42	37.95
XPLR Infrastructure	$1.23 billion	0.63	-$23.00 million	($1.90)	-4.32

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for TXO Partners and XPLR Infrastructure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	1	0	3.00
XPLR Infrastructure	2	12	2	0	2.00

TXO Partners currently has a consensus price target of $20.00, suggesting a potential upside of 25.48%. XPLR Infrastructure has a consensus price target of $17.64, suggesting a potential upside of 114.89%. Given XPLR Infrastructure’s higher possible upside, analysts clearly believe XPLR Infrastructure is more favorable than TXO Partners.

Summary

TXO Partners beats XPLR Infrastructure on 8 of the 14 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 XPLR Infrastructure

XPLR Infrastructure LP engages in the acquisition, management, and ownership of contracted clean energy projects with long-term cash flows. It owns interests in wind and solar projects in North America and natural gas infrastructure assets in Texas. The company was founded on March 6, 2014 and is headquartered in Juno Beach, FL.