Pacific Coast Oil Trust (OTCMKTS:ROYTL) vs. TXO Partners (NYSE:TXO) Critical Review

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

Analyst Ratings

This is a summary of recent ratings and target prices for TXO Partners and Pacific Coast Oil Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TXO Partners	0	0	1	1	3.50
Pacific Coast Oil Trust	0	0	0	0	0.00

TXO Partners currently has a consensus price target of $26.00, indicating a potential upside of 36.91%. Given TXO Partners’ stronger consensus rating and higher possible upside, equities analysts plainly believe TXO Partners is more favorable than Pacific Coast Oil Trust.

Valuation & Earnings

This table compares TXO Partners and Pacific Coast Oil Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TXO Partners	$380.72 million	2.04	-$103.99 million	($5.94)	-3.20
Pacific Coast Oil Trust	N/A	N/A	N/A	N/A	N/A

Pacific Coast Oil Trust has lower revenue, but higher earnings than TXO Partners.

Profitability

This table compares TXO Partners and Pacific Coast Oil Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TXO Partners	-63.22%	8.05%	5.41%
Pacific Coast Oil Trust	N/A	N/A	N/A

Institutional and Insider Ownership

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

Risk and Volatility

TXO Partners has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, Pacific Coast Oil Trust has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Summary

TXO Partners beats Pacific Coast Oil Trust on 8 of the 10 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 Pacific Coast Oil Trust

Pacific Coast Oil Trust acquires and holds net profits and royalty interests in various oil and natural gas properties located in California. Its properties include Orcutt properties located in the Santa Maria Basin; and West Pico, East Coyote, and Sawtelle properties located in the Los Angeles Basin of California. Pacific Coast Oil Trust was founded in 2012 and is based in Houston, Texas.