Head-To-Head Contrast: Frontline (NYSE:FRO) versus TXO Partners (NYSE:TXO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Frontline	49.47%	44.24%	20.89%
TXO Partners	-9.23%	-5.59%	-2.83%

Dividends

Frontline pays an annual dividend of $10.44 per share and has a dividend yield of 17.7%. TXO Partners pays an annual dividend of $1.60 per share and has a dividend yield of 11.1%. 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 pays out -207.8% of its earnings in the form of a dividend. TXO Partners has increased its dividend for 1 consecutive years.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontline	$1.97 billion	6.68	$379.08 million	$6.67	8.87
TXO Partners	$401.01 million	1.99	-$21.62 million	($0.77)	-18.67

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.

Risk and Volatility

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

Insider and Institutional Ownership

22.7% of Frontline shares are owned by institutional investors. Comparatively, 27.4% of TXO Partners shares are owned by institutional investors. 48.1% of Frontline shares are owned by company 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.

Analyst Recommendations

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

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

Frontline currently has a consensus target price of $45.37, suggesting a potential downside of 23.29%. TXO Partners has a consensus target price of $19.00, suggesting a potential upside of 32.18%. Given TXO Partners’ stronger consensus rating and higher probable upside, analysts clearly believe TXO Partners is more favorable than Frontline.

Summary

Frontline beats TXO Partners on 12 of the 18 factors compared between the two stocks.

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.

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.