Obsidian Energy (OTCMKTS:OBELF) and TXO Partners (NYSE:TXO) Head to Head Contrast

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for TXO Partners and Obsidian Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	1	1	3.50
Obsidian Energy	0	0	0	0	0.00

TXO Partners currently has a consensus price target of $26.00, suggesting a potential upside of 50.72%. Given TXO Partners’ stronger consensus rating and higher possible upside, research analysts plainly believe TXO Partners is more favorable than Obsidian Energy.

Volatility & Risk

TXO Partners has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500. Comparatively, Obsidian Energy has a beta of 2.47, indicating that its share price is 147% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$285.45 million	2.47	-$103.99 million	($5.94)	-2.90
Obsidian Energy	$220.00 million	1.97	-$576.07 million	$4.17	1.29

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

Institutional and Insider Ownership

27.4% of TXO Partners shares are owned by institutional investors. Comparatively, 0.0% of Obsidian Energy shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXO Partners	-63.22%	8.05%	5.41%
Obsidian Energy	99.13%	78.07%	35.32%

Summary

TXO Partners beats Obsidian Energy on 8 of the 14 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 Obsidian Energy

Obsidian Energy Ltd. is an exploration and production company. The firm engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Its property portfolio includes Cardium, Viking, and Peace River. The company was founded on December 27, 1979 and is headquartered in Calgary, Canada.