Financial Comparison: TXO Partners (NYSE:TXO) vs. Frontline (NYSE:FRO)

TXO Partners (NYSE:TXO) and Frontline (NYSE:FRO) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Risk & Volatility

TXO Partners has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500. Comparatively, Frontline has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$405.96 million	1.96	-$21.62 million	($0.77)	-18.64
Frontline	$2.71 billion	4.62	$379.08 million	$6.67	8.44

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

Analyst Ratings

This is a summary of current ratings for TXO Partners and Frontline, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	1	0	2	2	3.00
Frontline	2	5	4	0	2.18

TXO Partners currently has a consensus price target of $19.00, suggesting a potential upside of 32.41%. Frontline has a consensus price target of $45.37, suggesting a potential downside of 19.44%. Given TXO Partners’ stronger consensus rating and higher possible upside, equities research analysts clearly believe TXO Partners is more favorable than Frontline.

Profitability

This table compares TXO Partners and Frontline’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%
Frontline	49.47%	44.24%	20.89%

Insider and Institutional Ownership

27.4% of TXO Partners shares are owned by institutional investors. Comparatively, 22.7% of Frontline shares are owned by institutional investors. 48.1% of Frontline shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

TXO Partners pays an annual dividend of $1.60 per share and has a dividend yield of 11.2%. Frontline pays an annual dividend of $10.44 per share and has a dividend yield of 18.5%. TXO Partners pays out -207.8% of its earnings in the form of a dividend. Frontline pays out 156.5% 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 increased its dividend for 1 consecutive years.

Summary

Frontline beats TXO Partners on 12 of the 18 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 Frontline

Frontline plc, a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2022, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Limassol, Cyprus.