Black Stone Minerals, L.P. (BSM) vs Vermilion Energy Inc. (VET)

Black Stone Minerals, L.P. and Vermilion Energy Inc. are both Oil & Gas E&P companies. Black Stone Minerals, L.P. is the larger, with a market value of $3.1B against $1.9B — 1.6× the size. Vermilion Energy Inc. has negative trailing earnings, so its P/E is not meaningful; Black Stone Minerals, L.P. trades at 12.4×. Black Stone Minerals, L.P. grew revenue faster over the last twelve months: 5.07% against −5.20%. Black Stone Minerals, L.P. has the higher net margin (55.3% vs −24.5%) and the higher return on invested capital (14.1% vs 5.93%). Both pay a dividend; Black Stone Minerals, L.P. yields more (8.12% vs 2.93%). Across the 22 metrics below, Black Stone Minerals, L.P. leads on 15 and Vermilion Energy Inc. on 7.

Valuation

Metric BSM VET Oil & Gas E&P median
P/E 12.42 n/m 11.01
P/S 6.95 1.55 1.98
P/B 3.93 1.29 1.30
Price to free cash flow 10.41 3.43 10.68
EV/EBITDA 10.13 4.16 5.09
EV/Sales 7.38 2.40 2.63
Earnings yield 8.05% (15.83%) 5.78%
Free cash flow yield 9.61% 29.15% 4.91%

Profitability

Metric BSM VET Oil & Gas E&P median
Gross margin 100.00% 62.13% 80.41%
Operating margin 64.34% 18.12% 21.39%
Net margin 55.30% (24.50%) 14.17%
Free cash flow margin 66.81% 45.31% 8.18%
Return on equity 31.47% (18.15%) 10.05%
Return on assets 19.30% (7.23%) 5.81%
Return on invested capital 14.13% 5.93% 6.32%

Growth

Metric BSM VET Oil & Gas E&P median
Revenue growth (TTM) 5.07% (5.20%) 9.94%
EPS growth (last fiscal year) 11.30% (1,281.82%) (10.50%)
Revenue growth, 5-year CAGR 6.51% 8.21% 18.67%
Net income growth, 5-year CAGR 21.82% 0.00% 0.00%

Health

Metric BSM VET Oil & Gas E&P median
Debt to equity 0.18 0.63 0.28
Current ratio 3.76 1.00 0.96
Net debt to EBITDA 0.44 1.30 0.89

Dividend

Metric BSM VET Oil & Gas E&P median
Dividend yield 8.12% 2.93% 3.29%
Payout ratio 1.01 — 0.35

Size

Metric BSM VET Oil & Gas E&P median
Market cap 3.14b 1.93b 1.04b

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