Critical Survey: TXO Partners (NYSE:TXO) versus BW LPG (NYSE:BWLP)

TXO Partners (NYSE:TXO) and BW LPG (NYSE:BWLP) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Institutional & Insider Ownership

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

Valuation and Earnings

This table compares TXO Partners and BW LPG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$405.96 million	2.06	-$21.62 million	($0.77)	-19.63
BW LPG	$3.58 billion	1.01	$242.31 million	$2.94	8.12

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

Volatility and Risk

TXO Partners has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500. Comparatively, BW LPG has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Dividends

TXO Partners pays an annual dividend of $1.60 per share and has a dividend yield of 10.6%. BW LPG pays an annual dividend of $2.68 per share and has a dividend yield of 11.2%. TXO Partners pays out -207.8% of its earnings in the form of a dividend. BW LPG pays out 91.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TXO Partners has raised its dividend for 1 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXO Partners	-9.23%	-5.59%	-2.83%
BW LPG	12.64%	22.48%	13.50%

Analyst Ratings

This is a summary of recent ratings and recommmendations for TXO Partners and BW LPG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	1	0	1	2	3.00
BW LPG	0	2	3	0	2.60

TXO Partners currently has a consensus target price of $18.50, suggesting a potential upside of 22.39%. Given TXO Partners’ stronger consensus rating and higher probable upside, analysts plainly believe TXO Partners is more favorable than BW LPG.

Summary

BW LPG beats TXO Partners on 10 of the 17 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 BW LPG

BW LPG Limited, an investment holding company, engages in ship owning and chartering activities worldwide. The company operates through Shipping and Product Services segments. The company involved in the transportation of liquefied petroleum gas to oil companies, and trading and utility companies. It also offers integrated liquified petroleum gas (LPG) delivery services and support; wholesale and trade of LPG; and management services. It owns and operates LPG vessels and a fleet of very large gas carriers. The company was formerly known as BW Gas LPG Holding Limited and changed its name to BW LPG Limited in September 2013. BW LPG Limited was founded in 1935 and is headquartered in Singapore.