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 $23.3B against $15.3B — 1.5× the size. APA Corporation trades at the lower P/E: 9.0× against 43.5×. 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 (3.28% vs 0.88%). 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 9.02 43.47 10.57
P/S 1.75 26.21 1.80
P/B 1.90 14.07 1.27
Price to free cash flow 9.85 61.09 9.99
EV/EBITDA 3.47 31.44 5.08
EV/Sales 2.14 25.93 2.39
Earnings yield 11.09% 2.30% 6.06%
Free cash flow yield 10.15% 1.64% 6.17%

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% 9.71%
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% —
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) 0.91

Dividend

Metric APA TPL Oil & Gas E&P median
Dividend yield 3.28% 0.88% 4.93%
Payout ratio 0.18 0.23 0.07

Size

Metric APA TPL Oil & Gas E&P median
Market cap 15.30b 23.28b 923.59m

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