Royale Energy (OTCMKTS:ROYL) & TXO Partners (NYSE:TXO) Critical Contrast

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

Valuation & Earnings

This table compares Royale Energy and TXO Partners’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royale Energy	$2.16 million	1.80	-$1.83 million	N/A	N/A
TXO Partners	$380.72 million	1.51	-$103.99 million	($3.32)	-5.65

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

Insider and Institutional Ownership

27.4% of TXO Partners shares are owned by institutional investors. 61.8% of Royale Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Royale Energy	N/A	N/A	N/A
TXO Partners	-27.31%	6.89%	5.16%

Risk & Volatility

Royale Energy has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, TXO Partners has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500.

Analyst Recommendations

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

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

TXO Partners has a consensus target price of $26.00, suggesting a potential upside of 38.67%. Given TXO Partners’ higher possible upside, analysts plainly believe TXO Partners is more favorable than Royale Energy.

Summary

TXO Partners beats Royale Energy on 7 of the 12 factors compared between the two stocks.

About Royale Energy

Royale Energy, Inc. acquires, explores for, develops, produces, and sells oil and natural gas properties in the United States. Its principal operations are located in the Sacramento Basin and San Joaquin Basin in California, as well as in Utah, Texas, Oklahoma, Louisiana, and Colorado. Royale Energy, Inc. was incorporated in 1986 and is based in El Cajon, California.

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.