APA Corporation (APA) vs Texas Pacific Land Corporation (TPL)

APA Corporation and Texas Pacific Land Corporation are both Oil & Gas E&P companies. Texas Pacific Land Corporation is the larger, with a market value of $23.9B against $16.6B — 1.4× the size. APA Corporation trades at the lower P/E: 10.4× against 44.7×. Texas Pacific Land Corporation grew revenue faster over the last twelve months: 20.8% against −16.1%. Texas Pacific Land Corporation has the higher net margin (60.3% vs 19.5%) and the higher return on invested capital (29.5% vs 17.3%). Both pay a dividend; APA Corporation yields more (2.54% vs 0.67%). Across the 23 metrics below, Texas Pacific Land Corporation leads on 13 and APA Corporation on 10.

Valuation

Metric APA TPL Oil & Gas E&P median
P/E 10.37 44.70 11.01
P/S 2.02 26.95 1.98
P/B 2.18 14.47 1.30
Price to free cash flow 11.33 62.82 10.68
EV/EBITDA 3.90 32.34 5.09
EV/Sales 2.40 26.68 2.63
Earnings yield 9.64% 2.24% 5.78%
Free cash flow yield 8.82% 1.59% 4.91%

Profitability

Metric APA TPL Oil & Gas E&P median
Gross margin 92.58% 100.00% 80.41%
Operating margin 36.09% 74.92% 21.39%
Net margin 19.48% 60.32% 14.17%
Free cash flow margin 17.78% 42.90% 8.18%
Return on equity 22.59% 36.57% 10.05%
Return on assets 9.30% 33.17% 5.81%
Return on invested capital 17.27% 29.52% 6.32%

Growth

Metric APA TPL Oil & Gas E&P median
Revenue growth (TTM) (16.13%) 20.82% 9.94%
EPS growth (last fiscal year) 75.77% 6.04% (10.50%)
Revenue growth, 5-year CAGR 16.44% 21.41% 18.67%
Net income growth, 5-year CAGR 0.00% 22.28% 0.00%

Health

Metric APA TPL Oil & Gas E&P median
Debt to equity 0.47 0.00 0.28
Current ratio 0.95 10.86 0.96
Net debt to EBITDA 0.78 (0.22) 0.89

Dividend

Metric APA TPL Oil & Gas E&P median
Dividend yield 2.54% 0.67% 3.29%
Payout ratio 0.26 0.30 0.35

Size

Metric APA TPL Oil & Gas E&P median
Market cap 16.55b 23.90b 1.04b

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