Battalion Oil Corporation (BATL) vs PermRock Royalty Trust (PRT)

Battalion Oil Corporation and PermRock Royalty Trust are both Oil & Gas E&P companies. Battalion Oil Corporation is the larger, with a market value of $41.8M against $16.4M — 2.5× the size. Battalion Oil Corporation has negative trailing earnings, so its P/E is not meaningful; PermRock Royalty Trust trades at 10.5×. Battalion Oil Corporation grew revenue faster over the last twelve months: −12.0% against −41.7%. PermRock Royalty Trust has the higher net margin (78.4% vs −51.1%) and the higher return on invested capital (6.33% vs −1.20%). Across the 19 metrics below, PermRock Royalty Trust leads on 11 and Battalion Oil Corporation on 8.

Valuation

Metric BATL PRT Oil & Gas E&P median
P/E n/m 10.53 9.67
P/S 0.12 4.47 1.76
P/B n/m 0.63 1.19
Price to free cash flow 0.34 n/m 8.37
EV/EBITDA 1.95 5.97 4.59
EV/Sales 0.55 4.09 2.27
Earnings yield (682.43%) 9.49% 7.55%
Free cash flow yield 295.56% 0.00% 3.98%

Profitability

Metric BATL PRT Oil & Gas E&P median
Gross margin 37.73% 100.00% 79.54%
Operating margin (3.21%) 68.56% 24.01%
Net margin (51.08%) 78.37% 14.11%
Free cash flow margin 35.45% 0.00% 7.72%
Return on equity 715.46% 5.94% 8.99%
Return on assets (17.89%) 5.77% 4.63%
Return on invested capital (1.20%) 6.33% 6.33%

Growth

Metric BATL PRT Oil & Gas E&P median
Revenue growth (TTM) (11.96%) (41.73%) 13.60%
EPS growth (last fiscal year) 42.56% (7.14%) (10.17%)
Revenue growth, 5-year CAGR 2.29% 11.79% 18.67%
Net income growth, 5-year CAGR 0.00% 19.79% 0.00%

Health

Metric BATL PRT Oil & Gas E&P median
Debt to equity 0.78 0.00 0.29
Current ratio 2.19 3.70 0.92
Net debt to EBITDA 3.73 (0.26) 0.93

Dividend

Metric BATL PRT Oil & Gas E&P median
Dividend yield — 14.35% 3.76%
Payout ratio — 1.51 0.33

Size

Metric BATL PRT Oil & Gas E&P median
Market cap 41.80m 16.42m 953.29m

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