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 $14.0M against $4.4M — 3.2× the size. Barnwell Industries, Inc. has negative trailing earnings, so its P/E is not meaningful; Mesa Royalty Trust trades at 12.4×. 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%). Both pay a dividend; Mesa Royalty Trust yields more (13.3% vs 1.87%). Across the 19 metrics below, Mesa Royalty Trust leads on 15 and Barnwell Industries, Inc. on 4.

Valuation

Metric BRN MTR Oil & Gas E&P median
P/E n/m 12.36 10.57
P/S 1.15 9.50 1.80
P/B 1.51 1.44 1.27
Price to free cash flow n/m n/m 9.99
EV/EBITDA n/m 5.61 5.08
EV/Sales 0.78 5.17 2.39
Earnings yield (52.13%) 8.09% 6.06%
Free cash flow yield (12.32%) 0.00% 6.17%

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% 9.71%
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%) —
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) 0.91

Dividend

Metric BRN MTR Oil & Gas E&P median
Dividend yield 1.87% 13.28% 4.93%
Payout ratio 0.00 0.97 0.07

Size

Metric BRN MTR Oil & Gas E&P median
Market cap 14.00m 4.44m 923.59m

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