Battalion Oil Corporation (BATL) vs Mesa Royalty Trust (MTR)

Battalion Oil Corporation and Mesa Royalty Trust are both Oil & Gas E&P companies. Battalion Oil Corporation is the larger, with a market value of $41.8M against $3.7M — 11.4× the size. Battalion Oil Corporation has negative trailing earnings, so its P/E is not meaningful; Mesa Royalty Trust trades at 9.8×. Mesa Royalty Trust grew revenue faster over the last twelve months: −3.01% against −12.0%. Mesa Royalty Trust has the higher net margin (76.6% vs −51.1%) and the higher return on invested capital (20.9% vs −1.20%). Across the 19 metrics below, Mesa Royalty Trust leads on 10 and Battalion Oil Corporation on 9.

Valuation

Metric BATL MTR Oil & Gas E&P median
P/E n/m 9.82 9.65
P/S 0.12 7.55 1.73
P/B n/m 1.14 1.23
Price to free cash flow 0.35 n/m 9.34
EV/EBITDA 1.96 3.49 4.58
EV/Sales 0.55 3.21 2.27
Earnings yield (664.47%) 10.19% 7.67%
Free cash flow yield 287.79% 0.00% 4.40%

Profitability

Metric BATL MTR Oil & Gas E&P median
Gross margin 37.73% 100.00% 80.16%
Operating margin (3.21%) 92.05% 24.33%
Net margin (51.08%) 76.63% 14.15%
Free cash flow margin 35.45% 0.00% 10.07%
Return on equity 715.46% 11.61% 9.41%
Return on assets (17.89%) 11.09% 5.35%
Return on invested capital (1.20%) 20.94% 6.33%

Growth

Metric BATL MTR Oil & Gas E&P median
Revenue growth (TTM) (11.96%) (3.01%) 13.60%
EPS growth (last fiscal year) 42.56% (8.00%) (10.17%)
Revenue growth, 5-year CAGR 2.29% (6.29%) 18.67%
Net income growth, 5-year CAGR 0.00% (2.02%) 0.00%

Health

Metric BATL MTR Oil & Gas E&P median
Debt to equity 0.78 0.00 0.29
Current ratio 2.19 17.12 0.90
Net debt to EBITDA 3.73 (3.50) 0.93

Dividend

Metric BATL MTR Oil & Gas E&P median
Dividend yield — 6.23% 3.80%
Payout ratio — 0.61 0.33

Size

Metric BATL MTR Oil & Gas E&P median
Market cap 41.80m 3.68m 895.85m

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