Comparing TXO Partners (NYSE:TXO) & Epsilon Energy (NASDAQ:EPSN)

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

Risk & Volatility

TXO Partners has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, Epsilon Energy has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$282.81 million	2.87	-$103.99 million	$0.69	28.54
Epsilon Energy	$31.15 million	4.80	$6.95 million	$0.25	27.36

Epsilon Energy has lower revenue, but higher earnings than TXO Partners. Epsilon 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.

Institutional and Insider Ownership

27.4% of TXO Partners shares are owned by institutional investors. Comparatively, 60.3% of Epsilon Energy shares are owned by institutional investors. 5.5% of Epsilon 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 $2.44 per share and has a dividend yield of 12.4%. Epsilon Energy pays an annual dividend of $0.25 per share and has a dividend yield of 3.7%. TXO Partners pays out 353.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Epsilon Energy pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

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

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

Epsilon Energy has a consensus price target of $7.00, indicating a potential upside of 2.34%. Given Epsilon Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Epsilon Energy is more favorable than TXO Partners.

Profitability

This table compares TXO Partners and Epsilon 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%
Epsilon Energy	16.97%	5.31%	4.30%

Summary

Epsilon Energy beats TXO Partners on 12 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 Epsilon Energy

Epsilon Energy Ltd., a North American onshore independent natural gas and oil company, engages in the acquisition, development, gathering, and production of natural oil and gas reserves in the United States. The company operates through Upstream and Gathering System segments. It has natural gas production in the Marcellus Shale in Pennsylvania; and oil, natural gas liquids, and natural gas production in the Permian Basin in Texas and New Mexico, and Anadarko Basin in Oklahoma. Epsilon Energy Ltd. was incorporated in 2005 and is based in Calgary, Canada.