Vitesse Energy (NYSE:VTS – Get Free Report) and TXO Partners (NYSE:TXO – Get Free Report) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Vitesse Energy and TXO Partners, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vitesse Energy | 0 | 0 | 3 | 0 | 3.00 |
| TXO Partners | 0 | 0 | 1 | 1 | 3.50 |
Vitesse Energy presently has a consensus target price of $28.50, indicating a potential upside of 20.10%. TXO Partners has a consensus target price of $26.00, indicating a potential upside of 25.30%. Given TXO Partners’ stronger consensus rating and higher probable upside, analysts clearly believe TXO Partners is more favorable than Vitesse Energy.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Vitesse Energy | 10.92% | 7.87% | 5.77% |
| TXO Partners | -61.27% | 7.94% | 5.76% |
Insider & Institutional Ownership
51.6% of Vitesse Energy shares are held by institutional investors. Comparatively, 27.4% of TXO Partners shares are held by institutional investors. 15.8% of Vitesse Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Dividends
Vitesse Energy pays an annual dividend of $2.10 per share and has a dividend yield of 8.8%. TXO Partners pays an annual dividend of $2.60 per share and has a dividend yield of 12.5%. Vitesse Energy pays out 250.0% 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 -44.4% of its earnings in the form of a dividend. TXO Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Vitesse Energy and TXO Partners’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vitesse Energy | $233.90 million | 2.99 | -$19.74 million | $0.84 | 28.25 |
| TXO Partners | $380.72 million | 1.69 | -$103.99 million | ($5.85) | -3.55 |
Vitesse Energy has higher earnings, but lower revenue than TXO Partners. TXO Partners is trading at a lower price-to-earnings ratio than Vitesse Energy, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Vitesse Energy has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, TXO Partners has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.
Summary
Vitesse Energy beats TXO Partners on 10 of the 17 factors compared between the two stocks.
About Vitesse Energy
Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, 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.
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