TXO Partners (NYSE:TXO – Get Free Report) and Obsidian Energy (OTCMKTS:OBELF – Get Free Report) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.
Volatility & Risk
TXO Partners has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, Obsidian Energy has a beta of 2.47, indicating that its stock price is 147% more volatile than the S&P 500.
Institutional and Insider Ownership
27.4% of TXO Partners shares are held by institutional investors. Comparatively, 0.0% of Obsidian Energy shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
| 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 presently has a consensus target price of $26.00, indicating a potential upside of 53.57%. Given TXO Partners’ stronger consensus rating and higher possible upside, equities research analysts clearly believe TXO Partners is more favorable than Obsidian Energy.
Valuation and Earnings
This table compares TXO Partners and Obsidian Energy”s gross 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 | 2.43 | -$103.99 million | ($5.94) | -2.85 |
| Obsidian Energy | $220.00 million | 1.99 | -$576.07 million | $4.17 | 1.30 |
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.
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.
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