TXO Partners (NYSE:TXO) vs. Berry (NASDAQ:BRY) Head-To-Head Comparison

TXO Partners (NYSE:TXO) and Berry (NASDAQ:BRY) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Insider & Institutional Ownership

27.4% of TXO Partners shares are owned by institutional investors. Comparatively, 94.9% of Berry shares are owned by institutional investors. 1.0% of Berry 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.

Profitability

This table compares TXO Partners and Berry’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%
Berry	-4.19%	6.69%	3.00%

Earnings & Valuation

This table compares TXO Partners and Berry”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$286.59 million	2.08	-$103.99 million	($5.85)	-3.29
Berry	$844.47 million	0.47	$37.40 million	$0.01	517.00

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

Volatility and Risk

TXO Partners has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500. Comparatively, Berry has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.

Dividends

TXO Partners pays an annual dividend of $2.28 per share and has a dividend yield of 11.8%. Berry pays an annual dividend of $0.48 per share and has a dividend yield of 9.3%. TXO Partners pays out -39.0% of its earnings in the form of a dividend. Berry pays out 4,800.0% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	1	1	3.50
Berry	0	1	0	0	2.00

TXO Partners presently has a consensus target price of $26.00, indicating a potential upside of 34.99%. Berry has a consensus target price of $7.00, indicating a potential upside of 35.40%. Given Berry’s higher possible upside, analysts plainly believe Berry is more favorable than TXO Partners.

Summary

Berry beats TXO Partners on 9 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 Berry

Berry Petroleum Company, LLC., formerly Berry Petroleum Company, is an independent energy company. The Company is engaged in the production, development, exploitation, and acquisition of oil and natural gas. The Company’s principal reserves and producing properties are located in California (South Midway-Sunset (SMWSS)-Steam Floods, North Midway-Sunset (NMWSS)-Diatomite, NMWSS-New Steam Floods, Texas (Permian and E. Texas), Utah (Uinta) and Colorado (Piceance). The Company’s operations are conducted in the continental United States. In December 2013, Linn Energy LLC and Linn Co, LLC (Linn Co) announced the completion of the merger between LinnCo and Berry Petroleum Company (Berry), where LinnCo had acquired all of Berry’s interest.