Contrasting Atlas Energy Solutions (NYSE:AESI) and TXO Partners (NYSE:TXO)

Atlas Energy Solutions (NYSE:AESI) and TXO Partners (NYSE:TXO) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Insider & Institutional Ownership

34.6% of Atlas Energy Solutions shares are held by institutional investors. Comparatively, 27.4% of TXO Partners shares are held by institutional investors. 24.3% of Atlas Energy Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Atlas Energy Solutions and TXO Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Energy Solutions	$925.76 million	2.66	$105.43 million	$0.79	28.32
TXO Partners	$380.72 million	1.78	-$103.99 million	($5.94)	-2.79

Atlas Energy Solutions has higher revenue and earnings than TXO Partners. TXO Partners is trading at a lower price-to-earnings ratio than Atlas Energy Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlas Energy Solutions	8.78%	11.01%	6.22%
TXO Partners	-63.22%	8.05%	5.41%

Risk & Volatility

Atlas Energy Solutions has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, TXO Partners has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Atlas Energy Solutions and TXO Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Energy Solutions	0	4	6	2	2.83
TXO Partners	0	0	1	1	3.50

Atlas Energy Solutions presently has a consensus target price of $24.44, suggesting a potential upside of 9.27%. TXO Partners has a consensus target price of $26.00, suggesting a potential upside of 56.91%. Given TXO Partners’ stronger consensus rating and higher probable upside, analysts clearly believe TXO Partners is more favorable than Atlas Energy Solutions.

Dividends

Atlas Energy Solutions pays an annual dividend of $0.96 per share and has a dividend yield of 4.3%. TXO Partners pays an annual dividend of $2.32 per share and has a dividend yield of 14.0%. Atlas Energy Solutions pays out 121.5% 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 -39.1% 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.

Summary

Atlas Energy Solutions beats TXO Partners on 13 of the 17 factors compared between the two stocks.

About Atlas Energy Solutions

Atlas Energy Solutions Inc. engages in the production, processing, and sale of mesh and sand that are used as a proppant during the well completion process in the Permian Basin of Texas and New Mexico. The company provides transportation and logistics, storage solutions, and contract labor services. It sells its products and services to oil and natural gas exploration and production companies, and oilfield services companies. Atlas Energy Solutions Inc. was founded in 2017 and is headquartered in Austin, Texas.

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.