Barnwell Industries, Inc. (BRN) vs Mesa Royalty Trust (MTR)

Barnwell Industries, Inc. and Mesa Royalty Trust are both Oil & Gas E&P companies. Barnwell Industries, Inc. is the larger, with a market value of $13.0M against $3.8M — 3.4× the size. Barnwell Industries, Inc. has negative trailing earnings, so its P/E is not meaningful; Mesa Royalty Trust trades at 10.3×. Mesa Royalty Trust grew revenue faster over the last twelve months: −3.01% against −13.2%. Mesa Royalty Trust has the higher net margin (76.6% vs −46.7%) and the higher return on invested capital (20.9% vs −74.5%). Across the 18 metrics below, Mesa Royalty Trust leads on 14 and Barnwell Industries, Inc. on 4.

Valuation

Metric BRN MTR Oil & Gas E&P median
P/E n/m 10.27 11.01
P/S 1.13 7.90 1.98
P/B 1.47 1.20 1.30
Price to free cash flow n/m n/m 10.68
EV/EBITDA n/m 3.87 5.09
EV/Sales 1.04 3.56 2.63
Earnings yield (53.26%) 9.73% 5.78%
Free cash flow yield (12.59%) 0.00% 4.91%

Profitability

Metric BRN MTR Oil & Gas E&P median
Gross margin 28.37% 100.00% 80.41%
Operating margin (45.66%) 92.05% 21.39%
Net margin (46.69%) 76.63% 14.17%
Free cash flow margin (14.22%) 0.00% 8.18%
Return on equity (62.16%) 11.61% 10.05%
Return on assets (24.07%) 11.09% 5.81%
Return on invested capital (74.45%) 20.94% 6.32%

Growth

Metric BRN MTR Oil & Gas E&P median
Revenue growth (TTM) (13.17%) (3.01%) 9.94%
EPS growth (last fiscal year) (26.79%) (8.00%) (10.50%)
Revenue growth, 5-year CAGR (5.68%) (6.29%) 18.67%
Net income growth, 5-year CAGR 0.00% (2.02%) 0.00%

Health

Metric BRN MTR Oil & Gas E&P median
Debt to equity 0.00 0.00 0.28
Current ratio 1.90 17.12 0.96
Net debt to EBITDA 2.06 (3.50) 0.89

Dividend

Metric BRN MTR Oil & Gas E&P median
Dividend yield — 6.86% 3.29%
Payout ratio — 0.71 0.35

Size

Metric BRN MTR Oil & Gas E&P median
Market cap 12.99m 3.80m 1.04b

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