Comparing Carbon Energy (OTCMKTS:CRBOD) and TXO Partners (NYSE:TXO)

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

Valuation and Earnings

This table compares Carbon Energy 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
Carbon Energy	$116.63 million	0.00	$1.10 million	N/A	N/A
TXO Partners	$286.59 million	2.09	-$103.99 million	($5.85)	-3.31

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

Institutional & Insider Ownership

10.5% of Carbon Energy shares are owned by institutional investors. Comparatively, 27.4% of TXO Partners shares are owned by institutional investors. 7.1% of Carbon Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Carbon Energy	-38.38%	-8.44%	-2.43%
TXO Partners	-60.08%	9.33%	6.69%

Risk and Volatility

Carbon Energy has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, TXO Partners has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Carbon Energy and TXO Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carbon 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 34.37%. Given TXO Partners’ higher probable upside, analysts clearly believe TXO Partners is more favorable than Carbon Energy.

Summary

TXO Partners beats Carbon Energy on 8 of the 12 factors compared between the two stocks.

About Carbon Energy

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. As of December 31, 2018, it owned working interests in 7,100 net wells and royalty interests in approximately 900 wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions in approximately 340,700 net developed acres and approximately 1,319,200 net undeveloped acres. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.

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.