Hess Midstream Partners (NYSE:HESM) and TXO Partners (NYSE:TXO) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk. \n\nVolatility & Risk\nHess Midstream Partners has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, TXO Partners has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500. \n\nEarnings & Valuation\nThis table compares Hess Midstream Partners and TXO Partners’ revenue, earnings per share and valuation.\n\nHess Midstream Partners has higher revenue and earnings than TXO Partners. Hess Midstream Partners is trading at a lower price-to-earnings ratio than TXO Partners, indicating that it is currently the more affordable of the two stocks. \n\nProfitability\nThis table compares Hess Midstream Partners and TXO Partners’ net margins, return on equity and return on assets.\n\nInstitutional and Insider Ownership\n99.0% of Hess Midstream Partners shares are owned by institutional investors. Comparatively, 27.4% of TXO Partners shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.\n\nDividends\nHess Midstream Partners pays an annual dividend of $2.83 per share and has a dividend yield of 7.4%. TXO Partners pays an annual dividend of $2.44 per share and has a dividend yield of 16.1%. Hess Midstream Partners pays out 111.0% 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 581.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hess Midstream Partners has raised its dividend for 8 consecutive years and TXO Partners has raised its dividend for 1 consecutive years. \n\nAnalyst Ratings\nThis is a breakdown of recent recommendations and price targets for Hess Midstream Partners and TXO Partners, as reported by MarketBeat. \n\nHess Midstream Partners currently has a consensus target price of $43.50, indicating a potential upside of 13.16%. TXO Partners has a consensus target price of $20.00, indicating a potential upside of 32.28%. Given TXO Partners’ stronger consensus rating and higher possible upside, analysts plainly believe TXO Partners is more favorable than Hess Midstream Partners.\n\nSummary\nHess Midstream Partners beats TXO Partners on 12 of the 16 factors compared between the two stocks.\n\nAbout Hess Midstream Partners\nHess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering systems consists of approximately 1,410 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 660 million cubic feet per day; crude oil gathering system comprises approximately 570 miles of crude oil gathering pipelines; and produced water gathering system that includes approximately 300 miles of pipelines in gathering systems. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; a 50% interest in the Little Missouri 4 gas processing plant located in south of the Missouri River in McKenzie County, North Dakota; and Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; crude oil rail cars; and other Dakota access pipeline connections, as well as Johnson's Corner Header System, a crude oil pipeline header system. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.\n\nAbout TXO Partners\nTXO 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.

Reviewing Hess Midstream Partners (NYSE:HESM) and TXO Partners (NYSE:TXO)

The article compares Hess Midstream Partners (NYSE:HESM) and TXO Partners (NYSE:TXO) based on financial metrics including beta, earnings, valuation, institutional ownership, dividends, and analyst ratings. Hess Midstream Partners is highlighted as more affordable with lower volatility and stronger institutional ownership, while TXO Partners has a higher dividend yield and stronger analyst upside potential.