TXO Partners (NYSE:TXO) vs. Chesapeake Granite Wash Trust (OTCMKTS:CHKR) Financial Review

TXO Partners (NYSE:TXO) and Chesapeake Granite Wash Trust (OTCMKTS:CHKR) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for TXO Partners and Chesapeake Granite Wash Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	1	1	3.50
Chesapeake Granite Wash Trust	0	0	0	0	N/A

TXO Partners currently has a consensus price target of $26.00, indicating a potential upside of 43.81%. Given TXO Partners’ higher possible upside, equities research analysts plainly believe TXO Partners is more favorable than Chesapeake Granite Wash Trust.

Insider & Institutional Ownership

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

Earnings and Valuation

This table compares TXO Partners and Chesapeake Granite Wash Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$380.72 million	1.46	-$103.99 million	($3.32)	-5.45
Chesapeake Granite Wash Trust	$10.69 million	2.40	$8.05 million	$0.18	3.05

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

Dividends

TXO Partners pays an annual dividend of $2.32 per share and has a dividend yield of 12.8%. Chesapeake Granite Wash Trust pays an annual dividend of $0.09 per share and has a dividend yield of 16.4%. TXO Partners pays out -69.9% of its earnings in the form of a dividend. Chesapeake Granite Wash Trust pays out 50.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TXO Partners has raised its dividend for 1 consecutive years.

Volatility & Risk

TXO Partners has a beta of -0.18, indicating that its stock price is 118% less volatile than the S&P 500. Comparatively, Chesapeake Granite Wash Trust has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Profitability

This table compares TXO Partners and Chesapeake Granite Wash Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TXO Partners	-27.31%	6.89%	5.16%
Chesapeake Granite Wash Trust	75.26%	77.49%	77.49%

Summary

Chesapeake Granite Wash Trust beats TXO Partners on 9 of the 16 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 Chesapeake Granite Wash Trust

Chesapeake Granite Wash Trust owns royalty interests in oil, natural gas liquids, and natural gas properties located in the Colony Granite Wash play in Washita County in the Anadarko Basin of Western Oklahoma. It has royalty interests in 69 producing wells and 118 development wells, and in approximately 26,400 net acres of area. The company was incorporated in 2011 and is based in Houston, Texas.