Financial Survey: TXO Partners (NYSE:TXO) vs. Birchcliff Energy (OTCMKTS:BIREF)

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

Risk and Volatility

TXO Partners has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, Birchcliff Energy has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Valuation & Earnings

This table compares TXO Partners and Birchcliff 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	$282.81 million	2.46	-$103.99 million	$0.69	24.52
Birchcliff Energy	$428.33 million	2.82	$40.95 million	$0.14	31.74

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for TXO Partners and Birchcliff Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	0	0	0.00
Birchcliff Energy	0	0	0	6	4.00

Dividends

TXO Partners pays an annual dividend of $2.44 per share and has a dividend yield of 14.4%. Birchcliff Energy pays an annual dividend of $0.08 per share and has a dividend yield of 1.8%. 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. Birchcliff Energy pays out 57.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

27.4% of TXO Partners shares are held by institutional investors. Comparatively, 0.8% of Birchcliff Energy shares are held by institutional investors. 1.5% of Birchcliff Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares TXO Partners and Birchcliff 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%
Birchcliff Energy	9.39%	2.49%	1.68%

Summary

Birchcliff Energy beats TXO Partners on 10 of the 15 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 Birchcliff Energy

Birchcliff Energy Ltd., an intermediate oil and natural gas company, explores for, develops, and produces natural gas, light oil, condensate, and other natural gas liquids in Western Canada. The company holds interests in the areas of Montney/Doig Resource Play, including the Pouce Coupe and Gordondale properties in Alberta. Birchcliff Energy Ltd. was founded in 2004 and is headquartered in Calgary, Canada.