Comparing Carbon Energy (OTCMKTS:CRBOD) & TXO Partners (NYSE:TXO)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	1	1	3.50
Carbon Energy	0	0	0	0	N/A

TXO Partners presently has a consensus price target of $26.00, suggesting a potential upside of 33.20%. Given TXO Partners’ higher probable upside, research analysts plainly believe TXO Partners is more favorable than Carbon Energy.

Insider & Institutional Ownership

27.4% of TXO Partners shares are owned by institutional investors. Comparatively, 10.5% of Carbon Energy shares are owned by institutional investors. 7.1% of Carbon Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares TXO Partners and Carbon 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	$286.59 million	2.11	-$103.99 million	($5.85)	-3.34
Carbon Energy	$116.63 million	0.00	$1.10 million	N/A	N/A

Carbon Energy has lower revenue, but higher earnings than TXO Partners.

Volatility & Risk

TXO Partners has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500. Comparatively, Carbon Energy has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TXO Partners	-60.08%	9.33%	6.69%
Carbon Energy	-38.38%	-8.44%	-2.43%

Summary

TXO Partners beats Carbon Energy on 8 of the 12 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 Carbon Energy

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. As of December 31, 2018, it owned working interests in 7,100 net wells and royalty interests in approximately 900 wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions in approximately 340,700 net developed acres and approximately 1,319,200 net undeveloped acres. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.