ConocoPhillips (COP) vs Texas Pacific Land Corporation (TPL)

ConocoPhillips and Texas Pacific Land Corporation are both Oil & Gas E&P companies. ConocoPhillips is the larger, with a market value of $162.7B against $18.8B — 8.7× the size. ConocoPhillips trades at the lower P/E: 18.1× against 32.3×. Texas Pacific Land Corporation grew revenue faster over the last twelve months: 25.3% against 7.16%. Texas Pacific Land Corporation has the higher net margin (60.7% vs 14.4%) and the higher return on invested capital (31.9% vs 12.2%). Both pay a dividend; ConocoPhillips yields more (2.46% vs 0.85%). Across the 23 metrics below, Texas Pacific Land Corporation leads on 12 and ConocoPhillips on 11.

Valuation

Metric COP TPL Oil & Gas E&P median
P/E 18.07 32.34 9.67
P/S 2.57 19.63 1.76
P/B 2.54 10.54 1.19
Price to free cash flow 13.63 44.94 8.37
EV/EBITDA 6.49 23.09 4.59
EV/Sales 2.81 19.25 2.27
Earnings yield 5.53% 3.09% 7.55%
Free cash flow yield 7.34% 2.23% 3.98%

Profitability

Metric COP TPL Oil & Gas E&P median
Gross margin 63.33% 100.00% 79.54%
Operating margin 24.44% 75.55% 24.01%
Net margin 14.35% 60.71% 14.11%
Free cash flow margin 18.86% 66.22% 7.72%
Return on equity 14.13% 37.07% 8.99%
Return on assets 7.50% 33.45% 4.63%
Return on invested capital 12.17% 31.90% 6.33%

Growth

Metric COP TPL Oil & Gas E&P median
Revenue growth (TTM) 7.16% 25.30% 13.60%
EPS growth (last fiscal year) (18.69%) 6.04% (10.17%)
Revenue growth, 5-year CAGR 26.16% 21.41% 18.67%
Net income growth, 5-year CAGR 0.00% 22.28% 0.00%

Health

Metric COP TPL Oil & Gas E&P median
Debt to equity 0.36 0.00 0.29
Current ratio 1.54 0.00 0.92
Net debt to EBITDA 0.64 (0.22) 0.93

Dividend

Metric COP TPL Oil & Gas E&P median
Dividend yield 2.46% 0.85% 3.76%
Payout ratio 0.44 0.27 0.33

Size

Metric COP TPL Oil & Gas E&P median
Market cap 162.73b 18.77b 953.29m

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