Atlas Energy Solutions (NYSE:AESI) & TXO Partners (NYSE:TXO) Critical Analysis

Atlas Energy Solutions (NYSE:AESI) and TXO Partners (NYSE:TXO) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlas Energy Solutions	8.78%	11.01%	6.22%
TXO Partners	-63.22%	8.05%	5.41%

Institutional & Insider Ownership

34.6% of Atlas Energy Solutions shares are owned by institutional investors. Comparatively, 27.4% of TXO Partners shares are owned by institutional investors. 24.3% of Atlas Energy Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Atlas Energy Solutions and TXO Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Energy Solutions	0	4	6	2	2.83
TXO Partners	0	0	1	1	3.50

Atlas Energy Solutions currently has a consensus target price of $24.44, suggesting a potential upside of 4.29%. TXO Partners has a consensus target price of $26.00, suggesting a potential upside of 47.64%. Given TXO Partners’ stronger consensus rating and higher possible upside, analysts plainly believe TXO Partners is more favorable than Atlas Energy Solutions.

Dividends

Atlas Energy Solutions pays an annual dividend of $0.96 per share and has a dividend yield of 4.1%. TXO Partners pays an annual dividend of $2.32 per share and has a dividend yield of 13.2%. Atlas Energy Solutions pays out 121.5% 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 -39.1% 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Energy Solutions	$925.76 million	2.79	$105.43 million	$0.79	29.67
TXO Partners	$380.72 million	1.89	-$103.99 million	($5.94)	-2.96

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

Volatility and Risk

Atlas Energy Solutions has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, TXO Partners has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Summary

Atlas Energy Solutions beats TXO Partners on 13 of the 17 factors compared between the two stocks.

About Atlas Energy Solutions

Atlas Energy Solutions Inc. engages in the production, processing, and sale of mesh and sand that are used as a proppant during the well completion process in the Permian Basin of Texas and New Mexico. The company provides transportation and logistics, storage solutions, and contract labor services. It sells its products and services to oil and natural gas exploration and production companies, and oilfield services companies. Atlas Energy Solutions Inc. was founded in 2017 and is headquartered in Austin, 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.