Head-To-Head Comparison: TXO Partners (NYSE:TXO) vs. Vitesse Energy (NYSE:VTS)

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

Valuation & Earnings

This table compares TXO Partners and Vitesse Energy’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$380.72 million	1.64	-$103.99 million	($5.85)	-3.45
Vitesse Energy	$233.90 million	2.98	-$19.74 million	$0.84	28.21

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

Profitability

This table compares TXO Partners and Vitesse Energy’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%
Vitesse Energy	10.92%	7.87%	5.77%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TXO Partners and Vitesse Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	1	1	3.50
Vitesse Energy	0	0	3	0	3.00

TXO Partners presently has a consensus target price of $26.00, indicating a potential upside of 28.97%. Vitesse Energy has a consensus target price of $28.50, indicating a potential upside of 20.25%. Given TXO Partners’ stronger consensus rating and higher possible upside, analysts clearly believe TXO Partners is more favorable than Vitesse Energy.

Volatility & Risk

TXO Partners has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500. Comparatively, Vitesse Energy has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Institutional and Insider Ownership

27.4% of TXO Partners shares are owned by institutional investors. Comparatively, 51.6% of Vitesse Energy shares are owned by institutional investors. 15.8% of Vitesse Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

TXO Partners pays an annual dividend of $2.60 per share and has a dividend yield of 12.9%. Vitesse Energy pays an annual dividend of $2.10 per share and has a dividend yield of 8.9%. TXO Partners pays out -44.4% of its earnings in the form of a dividend. Vitesse Energy pays out 250.0% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Vitesse Energy 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 Vitesse Energy

Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.