Berry (NASDAQ:BRY) vs. TXO Partners (NYSE:TXO) Head-To-Head Survey

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

Analyst Ratings

This is a summary of recent ratings for Berry and TXO Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Berry	0	1	0	0	2.00
TXO Partners	0	0	1	1	3.50

Berry currently has a consensus price target of $7.00, indicating a potential upside of 35.40%. TXO Partners has a consensus price target of $26.00, indicating a potential upside of 34.99%. Given Berry’s higher possible upside, equities analysts clearly believe Berry is more favorable than TXO Partners.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Berry	-4.19%	6.69%	3.00%
TXO Partners	-60.08%	9.33%	6.69%

Dividends

Berry pays an annual dividend of $0.48 per share and has a dividend yield of 9.3%. TXO Partners pays an annual dividend of $2.28 per share and has a dividend yield of 11.8%. Berry pays out 4,800.0% 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 pays out -39.0% of its earnings in the form of a dividend. TXO Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Berry has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, TXO Partners has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Berry	$844.47 million	0.47	$37.40 million	$0.01	517.00
TXO Partners	$286.59 million	2.08	-$103.99 million	($5.85)	-3.29

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

Insider & Institutional Ownership

94.9% of Berry shares are owned by institutional investors. Comparatively, 27.4% of TXO Partners shares are owned by institutional investors. 1.0% of Berry shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Berry beats TXO Partners on 9 of the 17 factors compared between the two stocks.

About Berry

Berry Petroleum Company, LLC., formerly Berry Petroleum Company, is an independent energy company. The Company is engaged in the production, development, exploitation, and acquisition of oil and natural gas. The Company’s principal reserves and producing properties are located in California (South Midway-Sunset (SMWSS)-Steam Floods, North Midway-Sunset (NMWSS)-Diatomite, NMWSS-New Steam Floods, Texas (Permian and E. Texas), Utah (Uinta) and Colorado (Piceance). The Company’s operations are conducted in the continental United States. In December 2013, Linn Energy LLC and Linn Co, LLC (Linn Co) announced the completion of the merger between LinnCo and Berry Petroleum Company (Berry), where LinnCo had acquired all of Berry’s interest.

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.