Analyzing TXO Partners (NYSE:TXO) and Navigator (NYSE:NVGS)
by Kim Johansen · The Markets DailyTXO Partners (NYSE:TXO – Get Free Report) and Navigator (NYSE:NVGS – Get Free Report) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Dividends
TXO Partners pays an annual dividend of $1.60 per share and has a dividend yield of 11.5%. Navigator pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. TXO Partners pays out -207.8% of its earnings in the form of a dividend. Navigator pays out 12.9% 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 Navigator has increased its dividend for 1 consecutive years. TXO Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
TXO Partners has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500. Comparatively, Navigator has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.
Insider and Institutional Ownership
27.4% of TXO Partners shares are held by institutional investors. Comparatively, 19.0% of Navigator shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for TXO Partners and Navigator, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TXO Partners | 1 | 0 | 1 | 2 | 3.00 |
| Navigator | 0 | 1 | 4 | 0 | 2.80 |
TXO Partners presently has a consensus target price of $17.50, suggesting a potential upside of 25.41%. Navigator has a consensus target price of $23.00, suggesting a potential downside of 2.94%. Given TXO Partners’ stronger consensus rating and higher probable upside, equities research analysts plainly believe TXO Partners is more favorable than Navigator.
Profitability
This table compares TXO Partners and Navigator’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% |
| Navigator | 22.80% | 10.45% | 5.73% |
Earnings & Valuation
This table compares TXO Partners and Navigator”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TXO Partners | $401.01 million | 1.93 | -$21.62 million | ($0.77) | -18.12 |
| Navigator | $586.96 million | 2.48 | $100.12 million | $2.17 | 10.92 |
Navigator has higher revenue and earnings than TXO Partners. TXO Partners is trading at a lower price-to-earnings ratio than Navigator, indicating that it is currently the more affordable of the two stocks.
Summary
Navigator beats TXO Partners on 10 of the 16 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 Navigator
Navigator Holdings Ltd. engages in owning and operating a fleet of liquefied gas carriers worldwide. It provides international and regional seaborne transportation services of petrochemical gases, liquefied petroleum gases, and ammonia for energy companies, industrial users, and commodity traders. The company also offers ship shore infrastructure and consultancy services. It operates a fleet of 56 semi- or fully-refrigerated liquefied gas carriers. The company was formerly known as Isle of Man public limited company and changed its name to Navigator Holdings Ltd. in 2006. Navigator Holdings Ltd. was incorporated in 1997 and is based in London, the United Kingdom.