Comprehensive Stock Comparison
Compare Ring Energy, Inc. (REI) vs TXO Partners, L.P. (TXO) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | REI | 1.5% revenue growth vs TXO's -25.7% |
| Value | REI | Lower P/E (8.8x vs 25.0x) |
| Quality / Margins | TXO | 4.6% net margin vs REI's -5.0% |
| Stability / Safety | TXO | Beta 0.46 vs REI's 1.30, lower leverage |
| Dividends | TXO | 18.9% yield; 5-year raise streak; REI pays no meaningful dividend |
| Momentum (1Y) | REI | +10.2% vs TXO's -25.5% |
| Efficiency (ROA) | TXO | 1.2% ROA vs REI's -1.1%, ROIC -0.8% vs 8.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Ring Energy is an independent oil and gas exploration and production company focused on acquiring and developing properties in the Permian Basin of Texas and New Mexico. It generates revenue primarily from selling crude oil (roughly 80% of revenue) and natural gas production to end users, marketers, and other purchasers. The company's competitive advantage lies in its concentrated acreage position in low-decline, conventional Permian Basin assets that offer predictable production and development opportunities.
TXO Partners is a conventional oil and gas partnership that acquires, develops, and exploits mature producing properties in North American basins. It generates revenue primarily from oil and natural gas liquids production — roughly 60% from oil and 40% from natural gas — through its working interests in established fields like the San Juan and Permian Basins. The partnership's competitive advantage lies in its focus on low-decline, conventional assets with predictable cash flows and its operational expertise in optimizing mature fields.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
REI leads in 2 of 6 categories (Financial Metrics, Valuation Metrics). TXO leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Financial Metrics (TTM)
TXO and REI operate at a comparable scale, with $364M and $324M in trailing revenue. TXO is the more profitable business, keeping 4.6% of every revenue dollar as net income compared to REI's -5.0%. On growth, TXO holds the edge at +46.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | REIRing Energy, Inc. | TXOTXO Partners, L.P. |
|---|---|---|
| RevenueTrailing 12 months | $324M | $364M |
| EBITDAEarnings before interest/tax | $113M | $95M |
| Net IncomeAfter-tax profit | -$16M | $17M |
| Free Cash FlowCash after capex | -$50M | -$146M |
| Gross MarginGross profit ÷ Revenue | +52.1% | +35.3% |
| Operating MarginEBIT ÷ Revenue | +4.5% | +0.5% |
| Net MarginNet income ÷ Revenue | -5.0% | +4.6% |
| FCF MarginFCF ÷ Revenue | -15.4% | -40.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -11.9% | +46.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -100.0% | — |
Valuation Metrics
At 4.1x trailing earnings, REI trades at a 78% valuation discount to TXO's 19.3x P/E. On an enterprise value basis, REI's 2.9x EV/EBITDA is more attractive than TXO's 14.6x.
| Metric | REIRing Energy, Inc. | TXOTXO Partners, L.P. |
|---|---|---|
| Market CapShares × price | $292M | $686M |
| Enterprise ValueMkt cap + debt − cash | $679M | $836M |
| Trailing P/EPrice ÷ TTM EPS | 4.15x | 19.26x |
| Forward P/EPrice ÷ next-FY EPS est. | 8.81x | 25.04x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 2.93x | 14.62x |
| Price / SalesMarket cap ÷ Revenue | 0.80x | 2.43x |
| Price / BookPrice ÷ Book value/share | 0.33x | 0.74x |
| Price / FCFMarket cap ÷ FCF | 7.67x | — |
Profitability & Efficiency
TXO delivers a 2.3% return on equity — every $100 of shareholder capital generates $2 in annual profit, vs $-2 for REI. TXO carries lower financial leverage with a 0.26x debt-to-equity ratio, signaling a more conservative balance sheet compared to REI's 0.45x.
| Metric | REIRing Energy, Inc. | TXOTXO Partners, L.P. |
|---|---|---|
| ROE (TTM)Return on equity | -1.9% | +2.3% |
| ROA (TTM)Return on assets | -1.1% | +1.2% |
| ROICReturn on invested capital | +8.1% | -0.8% |
| ROCEReturn on capital employed | +10.4% | -0.8% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 0.45x | 0.26x |
| Net DebtTotal debt minus cash | $387M | $150M |
| Cash & Equiv.Liquid assets | $2M | $7M |
| Total DebtShort + long-term debt | $389M | $157M |
| Interest CoverageEBIT ÷ Interest expense | 1.25x | 2.16x |
Total Returns (with DRIP)
A $10,000 investment in TXO five years ago would be worth $8,373 today (with dividends reinvested), compared to $6,295 for REI. Over the past 12 months, REI leads with a +10.2% total return vs TXO's -25.5%. The 3-year compound annual growth rate (CAGR) favors TXO at -8.6% vs REI's -12.4% — a key indicator of consistent wealth creation.
| Metric | REIRing Energy, Inc. | TXOTXO Partners, L.P. |
|---|---|---|
| YTD ReturnYear-to-date | +54.9% | +13.9% |
| 1-Year ReturnPast 12 months | +10.2% | -25.5% |
| 3-Year ReturnCumulative with dividends | -32.9% | -23.6% |
| 5-Year ReturnCumulative with dividends | -37.1% | -16.3% |
| 10-Year ReturnCumulative with dividends | -66.3% | -16.3% |
| CAGR (3Y)Annualised 3-year return | -12.4% | -8.6% |
Risk & Volatility
TXO is the less volatile stock with a 0.46 beta — it tends to amplify market swings less than REI's 1.30 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. REI currently trades 99.3% from its 52-week high vs TXO's 61.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | REIRing Energy, Inc. | TXOTXO Partners, L.P. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.30x | 0.46x |
| 52-Week HighHighest price in past year | $1.42 | $20.24 |
| 52-Week LowLowest price in past year | $0.72 | $10.12 |
| % of 52W HighCurrent price vs 52-week peak | +99.3% | +61.9% |
| RSI (14)Momentum oscillator 0–100 | 61.4 | 60.2 |
| Avg Volume (50D)Average daily shares traded | 2.4M | 192K |
Analyst Outlook
Wall Street rates REI as "Buy" and TXO as "Strong Buy". Consensus price targets imply 77.3% upside for REI (target: $3) vs 47.8% for TXO (target: $19). TXO is the only dividend payer here at 18.87% yield — a key consideration for income-focused portfolios.
| Metric | REIRing Energy, Inc. | TXOTXO Partners, L.P. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Strong Buy |
| Price TargetConsensus 12-month target | $2.50 | $18.50 |
| # AnalystsCovering analysts | 10 | 2 |
| Dividend YieldAnnual dividend ÷ price | — | +18.9% |
| Dividend StreakConsecutive years of raises | — | 5 |
| Dividend / ShareAnnual DPS | — | $2.36 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.3% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 23 | Feb 26 | Change |
|---|---|---|---|
| Ring Energy, Inc. (REI) | 100 | 48.93 | -51.1% |
| TXO Partners, L.P. (TXO) | 101.95 | 53.32 | -47.7% |
TXO Partners, L.P. (TXO) returned -16% over 5 years vs Ring Energy, Inc. (REI)'s -37%.
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Ring Energy, Inc. (REI) | $31M | $366M | +1081.2% |
| TXO Partners, L.P. (TXO) | $109M | $283M | +160.0% |
Ring Energy, Inc.'s revenue grew from $31M (2015) to $366M (2024) — a 31.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Ring Energy, Inc. (REI) | -29.2% | 18.4% | +163.1% |
| TXO Partners, L.P. (TXO) | -150.1% | 8.3% | +105.5% |
Ring Energy, Inc.'s net margin went from -29% (2015) to 18% (2024).
Chart 4P/E Ratio History — 7 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Ring Energy, Inc. (REI) | 463.3 | 4 | -99.1% |
Ring Energy, Inc. has traded in a 3x–463x P/E range over 7 years; current trailing P/E is ~4x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Ring Energy, Inc. (REI) | -0.32 | 0.34 | +206.3% |
| TXO Partners, L.P. (TXO) | -6.53 | 0.65 | +110.0% |
Ring Energy, Inc.'s EPS grew from $-0.32 (2015) to $0.34 (2024).
Chart 6Free Cash Flow — 5 Years
Ring Energy, Inc. generated $38M FCF in 2024 (+95% vs 2021). TXO Partners, L.P. generated $-156M FCF in 2024 (-7% vs 2021).
REI vs TXO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is REI or TXO a better buy right now?
Ring Energy, Inc. (REI) offers the better valuation at 4.1x trailing P/E (8.8x forward), making it the more compelling value choice. Analysts rate TXO Partners, L.P. (TXO) a "Strong Buy" — based on 2 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — REI or TXO?
On trailing P/E, Ring Energy, Inc. (REI) is the cheapest at 4.1x versus TXO Partners, L.P. at 19.3x. On forward P/E, Ring Energy, Inc. is actually cheaper at 8.8x.
03Which is the better long-term investment — REI or TXO?
Over the past 5 years, TXO Partners, L.P. (TXO) delivered a total return of -16.3%, compared to -37.1% for Ring Energy, Inc. (REI). A $10,000 investment in TXO five years ago would be worth approximately $8K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TXO returned -16.3% versus REI's -66.3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — REI or TXO?
By beta (market sensitivity over 5 years), TXO Partners, L.P. (TXO) is the lower-risk stock at 0.46β versus Ring Energy, Inc.'s 1.30β — meaning REI is approximately 181% more volatile than TXO relative to the S&P 500. On balance sheet safety, TXO Partners, L.P. (TXO) carries a lower debt/equity ratio of 26% versus 45% for Ring Energy, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — REI or TXO?
Ring Energy, Inc. (REI) is the more profitable company, earning 18.4% net margin versus 8.3% for TXO Partners, L.P. — meaning it keeps 18.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: REI leads at 36.3% versus -2.4% for TXO. At the gross margin level — before operating expenses — REI leads at 44.7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is REI or TXO more undervalued right now?
On forward earnings alone, Ring Energy, Inc. (REI) trades at 8.8x forward P/E versus 25.0x for TXO Partners, L.P. — 16.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for REI: 77.3% to $2.50.
07Which pays a better dividend — REI or TXO?
In this comparison, TXO (18.9% yield) pays a dividend. REI does not pay a meaningful dividend and should not be held primarily for income.
08Is REI or TXO better for a retirement portfolio?
For long-horizon retirement investors, TXO Partners, L.P. (TXO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.46), 18.9% yield). Both have compounded well over 10 years (TXO: -16.3%, REI: -66.3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between REI and TXO?
Both stocks operate in the Energy sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: REI is a small-cap deep-value stock; TXO is a small-cap income-oriented stock. TXO pays a dividend while REI does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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