Navigator (NYSE:NVGS) and TXO Partners (NYSE:TXO) Head-To-Head Comparison

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

Risk and Volatility

Navigator has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, TXO Partners has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.

Profitability

This table compares Navigator and TXO Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Navigator	22.80%	10.45%	5.73%
TXO Partners	-9.23%	-5.59%	-2.83%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navigator	$586.96 million	2.50	$100.12 million	$2.17	11.01
TXO Partners	$401.01 million	1.98	-$21.62 million	($0.77)	-18.56

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Navigator and TXO Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navigator	0	1	4	0	2.80
TXO Partners	1	0	2	2	3.00

Navigator presently has a consensus price target of $23.00, suggesting a potential downside of 3.76%. TXO Partners has a consensus price target of $19.00, suggesting a potential upside of 32.96%. Given TXO Partners’ stronger consensus rating and higher possible upside, analysts clearly believe TXO Partners is more favorable than Navigator.

Dividends

Navigator pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. TXO Partners pays an annual dividend of $1.60 per share and has a dividend yield of 11.2%. Navigator pays out 12.9% of its earnings in the form of a dividend. TXO Partners pays out -207.8% 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. Navigator has increased its dividend for 1 consecutive years and TXO Partners has increased its dividend for 1 consecutive years. TXO Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

19.0% of Navigator shares are held by institutional investors. Comparatively, 27.4% of TXO Partners shares are held by institutional investors. 0.4% of Navigator shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Navigator beats TXO Partners on 11 of the 17 factors compared between the two stocks.

About Navigator

Navigator Holdings Ltd. engages in owning and operating a fleet of liquefied gas carriers worldwide. It provides international and regional seaborne transportation services of petrochemical gases, liquefied petroleum gases, and ammonia for energy companies, industrial users, and commodity traders. The company also offers ship shore infrastructure and consultancy services. It operates a fleet of 56 semi- or fully-refrigerated liquefied gas carriers. The company was formerly known as Isle of Man public limited company and changed its name to Navigator Holdings Ltd. in 2006. Navigator Holdings Ltd. was incorporated in 1997 and is based in London, the United Kingdom.

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.