Diversified Energy Company PLC (DEC) vs Ecopetrol S.A. (EC)

Diversified Energy Company PLC and Ecopetrol S.A. are both Oil & Gas Integrated companies. Ecopetrol S.A. is the larger, with a market value of $33.7B against $1.1B — 30.6× the size. Diversified Energy Company PLC trades at the lower P/E: 1.2× against 13.2×. Diversified Energy Company PLC grew revenue faster over the last twelve months: −42.1% against −83.7%. Diversified Energy Company PLC has the higher net margin (29.5% vs 8.76%) and the higher return on invested capital (12.9% vs 8.20%). Both pay a dividend; Ecopetrol S.A. yields more (18.0% vs 1.10%). Across the 22 metrics below, Diversified Energy Company PLC leads on 15 and Ecopetrol S.A. on 7.

Valuation

Metric DEC EC Oil & Gas Integrated median
P/E 1.16 13.19 11.88
P/S 0.56 1.43 1.20
P/B 1.04 1.60 1.56
Price to free cash flow n/m 7.76 9.74
EV/EBITDA 3.61 6.26 4.94
EV/Sales 2.22 2.24 1.57
Earnings yield 85.94% 7.58% 7.58%
Free cash flow yield (12.92%) 12.89% 6.71%

Profitability

Metric DEC EC Oil & Gas Integrated median
Gross margin 68.18% 31.44% 39.18%
Operating margin 45.24% 22.29% 14.90%
Net margin 29.45% 8.76% 8.76%
Free cash flow margin (7.28%) 18.44% 9.61%
Return on equity 74.90% 2.86% 12.22%
Return on assets 17.06% 1.09% 6.47%
Return on invested capital 12.85% 8.20% 10.61%

Growth

Metric DEC EC Oil & Gas Integrated median
Revenue growth (TTM) (42.12%) (83.68%) 5.63%
EPS growth (last fiscal year) 348.91% (24.10%) —
Revenue growth, 5-year CAGR 33.15% (18.18%) 12.04%
Net income growth, 5-year CAGR 0.00% 0.34% 0.00%

Health

Metric DEC EC Oil & Gas Integrated median
Debt to equity 3.07 1.02 0.55
Current ratio 0.57 1.55 1.18
Net debt to EBITDA 3.14 2.26 0.80

Dividend

Metric DEC EC Oil & Gas Integrated median
Dividend yield 1.10% 18.03% 5.01%
Payout ratio — 0.39 0.29

Size

Metric DEC EC Oil & Gas Integrated median
Market cap 1.10b 33.65b 51.12b

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