Critical Comparison: TXO Partners (NYSE:TXO) & Talos Energy (NYSE:TALO)

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

Earnings & Valuation

This table compares Talos Energy and TXO Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talos Energy	$1.97 billion	0.62	$187.33 million	($0.51)	-13.42
TXO Partners	$282.81 million	2.35	-$103.99 million	$0.69	23.43

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

Volatility & Risk

Talos Energy has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, TXO Partners has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Talos Energy and TXO Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talos Energy	0	2	7	0	2.78
TXO Partners	0	0	0	0	0.00

Talos Energy presently has a consensus target price of $15.33, suggesting a potential upside of 124.04%. Given Talos Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Talos Energy is more favorable than TXO Partners.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Talos Energy	3.95%	-1.98%	-0.86%
TXO Partners	-63.22%	8.05%	5.41%

Institutional and Insider Ownership

89.3% of Talos Energy shares are owned by institutional investors. Comparatively, 27.4% of TXO Partners shares are owned by institutional investors. 0.8% of Talos Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Talos Energy beats TXO Partners on 10 of the 14 factors compared between the two stocks.

About Talos Energy

Talos Energy Inc., through its subsidiaries, engages in the exploration and production of oil, natural gas, and natural gas liquids in the United States and Mexico. It also engages in the development of carbon capture and sequestration. Talos Energy Inc. was founded in 2011 and is headquartered in Houston, Texas.

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.