Critical Contrast: The American Energy Group (OTCMKTS:AEGG) & TXO Partners (NYSE:TXO)

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

Insider & Institutional Ownership

27.4% of TXO Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares TXO Partners and The American Energy Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$299.70 million	2.09	-$103.99 million	$0.42	36.00
The American Energy Group	N/A	N/A	N/A	N/A	N/A

The American Energy Group has lower revenue, but higher earnings than TXO Partners.

Analyst Recommendations

This is a breakdown of recent recommendations for TXO Partners and The American Energy Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	1	0	3.00
The American Energy Group	0	0	0	0	0.00

TXO Partners currently has a consensus price target of $20.00, suggesting a potential upside of 32.28%. Given TXO Partners’ stronger consensus rating and higher possible upside, equities research analysts clearly believe TXO Partners is more favorable than The American Energy Group.

Volatility and Risk

TXO Partners has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, The American Energy Group has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares TXO Partners and The American Energy Group’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%
The American Energy Group	N/A	N/A	N/A

Summary

TXO Partners beats The American Energy Group on 7 of the 9 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 The American Energy Group

The American Energy Group, Ltd. operates as an energy resource royalty company. The company holds 18% interest in the Yasin (2768-7) Block in Pakistan; and interests in two oil and gas leases in Galveston County, Texas. It also holds a 2.5% working interest in the Sanjawi Block No. 3068-2, Zone II that covers an area of 2,258 square kilometer located in Baluchistan Province; and Zamzama North Block No. 2667-8, Zone III that covers an area of 1,229 square kilometer located in Sindh Province. The company was formerly known as Belize-American Corp. Internationale and changed its name to The American Energy Group, Ltd. in November 1994. The American Energy Group, Ltd. was incorporated in 1987 and is headquartered in Westport, Connecticut.