TXO Partners (NYSE:TXO – Get Free Report) and Suncor Energy (NYSE:SU – Get Free Report) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.
Earnings and Valuation
This table compares TXO Partners and Suncor Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TXO Partners | $401.01 million | 1.98 | -$21.62 million | ($0.77) | -18.56 |
| Suncor Energy | $35.29 billion | 2.39 | $4.24 billion | $5.43 | 13.30 |
Dividends
TXO Partners pays an annual dividend of $1.60 per share and has a dividend yield of 11.2%. Suncor Energy pays an annual dividend of $1.73 per share and has a dividend yield of 2.4%. TXO Partners pays out -207.8% of its earnings in the form of a dividend. Suncor Energy pays out 31.9% 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 increased its dividend for 1 consecutive years and Suncor Energy has increased its dividend for 4 consecutive years. TXO Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of current ratings and recommmendations for TXO Partners and Suncor Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TXO Partners | 1 | 0 | 2 | 2 | 3.00 |
| Suncor Energy | 0 | 2 | 7 | 3 | 3.08 |
TXO Partners presently has a consensus price target of $19.00, suggesting a potential upside of 32.96%. Suncor Energy has a consensus price target of $79.62, suggesting a potential upside of 10.28%. Given TXO Partners’ higher possible upside, equities research analysts plainly believe TXO Partners is more favorable than Suncor Energy.
Institutional and Insider Ownership
27.4% of TXO Partners shares are held by institutional investors. Comparatively, 67.4% of Suncor Energy shares are held by institutional investors. 1.0% of Suncor Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
TXO Partners has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.
Profitability
This table compares TXO Partners and Suncor Energy’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% |
| Suncor Energy | 15.62% | 20.05% | 10.06% |
Summary
Suncor Energy beats TXO Partners on 15 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 Suncor Energy
Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The Exploration and Production segment is involved in offshore operations in the East Coast of Canada; and marketing and risk management of crude oil and natural gas. The Refining and Marketing segment engages in the refining of crude oil products; and distribution, marketing, transportation, and risk management of refined and petrochemical products, and other purchased products through the retail and wholesale networks. This segment is also involved in the trading of crude oil, refined products, natural gas, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada. Suncor Energy Inc.
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