TXO Partners (NYSE:TXO) vs. Black Stone Minerals (NYSE:BSM) Head to Head Review

TXO Partners (NYSE:TXO) and Black Stone Minerals (NYSE:BSM) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Profitability

This table compares TXO Partners and Black Stone Minerals’ 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%
Black Stone Minerals	55.74%	32.76%	22.26%

Analyst Recommendations

This is a breakdown of current recommendations for TXO Partners and Black Stone Minerals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	1	0	3.00
Black Stone Minerals	0	3	0	0	2.00

TXO Partners presently has a consensus price target of $20.00, suggesting a potential upside of 25.48%. Black Stone Minerals has a consensus price target of $14.00, suggesting a potential upside of 6.02%. Given TXO Partners’ stronger consensus rating and higher probable upside, analysts plainly believe TXO Partners is more favorable than Black Stone Minerals.

Risk & Volatility

TXO Partners has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, Black Stone Minerals has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.

Earnings and Valuation

This table compares TXO Partners and Black Stone Minerals”s revenue, earnings per share 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
Black Stone Minerals	$433.70 million	6.43	$271.33 million	$0.92	14.35

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

Dividends

TXO Partners pays an annual dividend of $2.44 per share and has a dividend yield of 15.3%. Black Stone Minerals pays an annual dividend of $1.50 per share and has a dividend yield of 11.4%. TXO Partners pays out 581.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Black Stone Minerals pays out 163.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TXO Partners has increased its dividend for 1 consecutive years. TXO Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

27.4% of TXO Partners shares are held by institutional investors. Comparatively, 14.5% of Black Stone Minerals shares are held by institutional investors. 17.8% of Black Stone Minerals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Black Stone Minerals beats TXO Partners on 10 of the 17 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 Black Stone Minerals

Black Stone Minerals, L.P., together with its subsidiaries, owns and manages oil and natural gas mineral interests. It owns mineral interests in approximately 16.8 million gross acres, nonparticipating royalty interests in 1.8 million gross acres, and overriding royalty interests in 1.6 million gross acres located in 41 states in the United States. The company was founded in 1876 and is based in Houston, Texas.