Analyzing TXO Partners (NYSE:TXO) and Repsol (OTCMKTS:REPYY)

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

Earnings and Valuation

This table compares Repsol and TXO Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repsol	$61.38 billion	0.25	$3.43 billion	$1.54	8.62
TXO Partners	$282.81 million	2.84	-$103.99 million	$0.69	28.25

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

Insider & Institutional Ownership

0.3% of Repsol shares are owned by institutional investors. Comparatively, 27.4% of TXO Partners shares are owned by institutional investors. 1.0% of Repsol shares are owned by company 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.

Risk and Volatility

Repsol has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, TXO Partners has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Repsol	3.10%	11.40%	5.32%
TXO Partners	-63.22%	8.05%	5.41%

Dividends

Repsol pays an annual dividend of $0.76 per share and has a dividend yield of 5.7%. TXO Partners pays an annual dividend of $2.44 per share and has a dividend yield of 12.5%. Repsol pays out 49.4% of its earnings in the form of a dividend. 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repsol	0	4	0	1	2.40
TXO Partners	0	0	0	0	0.00

Summary

Repsol beats TXO Partners on 11 of the 15 factors compared between the two stocks.

About Repsol

Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.

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.