Black Stone Minerals, L.P. (BSM) vs Talos Energy Inc. (TALO)

Black Stone Minerals, L.P. and Talos Energy Inc. are both Oil & Gas E&P companies. Black Stone Minerals, L.P. and Talos Energy Inc. are of similar size ($3.1B and $2.8B). Talos Energy Inc. has negative trailing earnings, so its P/E is not meaningful; Black Stone Minerals, L.P. trades at 11.9×. Black Stone Minerals, L.P. grew revenue faster over the last twelve months: 5.07% against 2.44%. Black Stone Minerals, L.P. has the higher net margin (55.3% vs −20.5%) and the higher return on invested capital (14.1% vs −5.85%). Across the 20 metrics below, Black Stone Minerals, L.P. leads on 13 and Talos Energy Inc. on 7.

Valuation

Metric BSM TALO Oil & Gas E&P median
P/E 11.92 n/m 10.57
P/S 6.67 1.39 1.80
P/B 3.77 1.35 1.27
Price to free cash flow 9.99 8.22 9.99
EV/EBITDA 9.75 4.01 5.08
EV/Sales 7.09 1.74 2.39
Earnings yield 8.39% (14.33%) 6.06%
Free cash flow yield 10.01% 12.16% 6.17%

Profitability

Metric BSM TALO Oil & Gas E&P median
Gross margin 100.00% 100.00% 80.41%
Operating margin 64.34% (12.70%) 21.39%
Net margin 55.30% (20.46%) 14.17%
Free cash flow margin 66.81% 17.52% 9.71%
Return on equity 31.47% (17.79%) 10.05%
Return on assets 19.30% (7.13%) 5.81%
Return on invested capital 14.13% (5.85%) 6.32%

Growth

Metric BSM TALO Oil & Gas E&P median
Revenue growth (TTM) 5.07% 2.44% 9.94%
EPS growth (last fiscal year) 11.30% (540.91%) —
Revenue growth, 5-year CAGR 6.51% 25.32% 18.67%
Net income growth, 5-year CAGR 21.82% 0.00% 0.00%

Health

Metric BSM TALO Oil & Gas E&P median
Debt to equity 0.18 0.60 0.28
Current ratio 3.76 1.61 0.96
Net debt to EBITDA 0.44 1.37 0.91

Dividend

Metric BSM TALO Oil & Gas E&P median
Dividend yield 11.86% — 4.93%
Payout ratio — 0.00 0.07

Size

Metric BSM TALO Oil & Gas E&P median
Market cap 3.12b 2.84b 923.59m

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