Critical Contrast: Gulfport Energy (OTCMKTS:GPORQ) and TXO Partners (NYSE:TXO)

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

Institutional & Insider Ownership

27.4% of TXO Partners shares are held by institutional investors. Comparatively, 0.0% of Gulfport Energy shares are held by institutional investors. 0.5% of Gulfport Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXO Partners	-60.08%	9.33%	6.69%
Gulfport Energy	-144.45%	-93.72%	-3.48%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for TXO Partners and Gulfport Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	1	1	3.50
Gulfport Energy	0	0	0	0	N/A

TXO Partners presently has a consensus price target of $26.00, suggesting a potential upside of 27.64%. Given TXO Partners’ higher probable upside, research analysts plainly believe TXO Partners is more favorable than Gulfport Energy.

Volatility and Risk

TXO Partners has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500. Comparatively, Gulfport Energy has a beta of 5.5, indicating that its stock price is 450% more volatile than the S&P 500.

Earnings and Valuation

This table compares TXO Partners and Gulfport Energy’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$286.59 million	2.20	-$103.99 million	($5.85)	-3.48
Gulfport Energy	$866.54 million	26.53	-$1.63 billion	($6.86)	-20.85

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

Summary

TXO Partners beats Gulfport Energy on 10 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 Gulfport Energy

Gulfport Energy Corporation engages in the exploration, development, acquisition, and production of natural gas, crude oil, and natural gas liquids (NGL) in the United States. Its principal properties include Utica Shale covering an area of approximately 205,000 net reservoir acres primarily located in Eastern Ohio; and SCOOP covering an area of approximately 76,000 net reservoir acres primarily located in Oklahoma. As of December 31, 2020, it had 2.6 trillion cubic feet of natural gas equivalent of proved reserves; proved undeveloped reserves of 7 MMbbl of oil; and 923 Bcf of natural gas and 16 MMbbl of NGL. The company was incorporated in 1997 and is headquartered in Oklahoma City, Oklahoma. On November 13, 2020, Gulfport Energy Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.