Diversified Energy Company PLC (DEC) vs Sky Quarry Inc. (SKYQ)

Diversified Energy Company PLC and Sky Quarry Inc. are both Oil & Gas Integrated companies. Diversified Energy Company PLC is the larger, with a market value of $1.1B against $24.9M — 44.2× the size. Sky Quarry Inc. has negative trailing earnings, so its P/E is not meaningful; Diversified Energy Company PLC trades at 1.2×. Diversified Energy Company PLC grew revenue faster over the last twelve months: −42.1% against −67.2%. Diversified Energy Company PLC has the higher net margin (29.5% vs 0.00%) and the higher return on invested capital (12.9% vs −91.7%). Across the 17 metrics below, Diversified Energy Company PLC leads on 12 and Sky Quarry Inc. on 5.

Valuation

Metric DEC SKYQ Oil & Gas Integrated median
P/E 1.16 n/m 11.88
P/S 0.56 2.28 1.20
P/B 1.04 1.19 1.56
Price to free cash flow n/m n/m 9.74
EV/EBITDA 3.61 n/m 4.94
EV/Sales 2.22 1.53 1.57
Earnings yield 85.94% (142.12%) 7.58%
Free cash flow yield (12.92%) (59.86%) 6.71%

Profitability

Metric DEC SKYQ Oil & Gas Integrated median
Gross margin 68.18% 0.00% 39.18%
Operating margin 45.24% 0.00% 14.90%
Net margin 29.45% 0.00% 8.76%
Free cash flow margin (7.28%) 0.00% 9.61%
Return on equity 74.90% (132.79%) 12.22%
Return on assets 17.06% (50.98%) 6.47%
Return on invested capital 12.85% (91.71%) 10.61%

Growth

Metric DEC SKYQ Oil & Gas Integrated median
Revenue growth (TTM) (42.12%) (67.15%) 5.63%
EPS growth (last fiscal year) 348.91% 28.41% —
Revenue growth, 5-year CAGR 33.15% — 12.04%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric DEC SKYQ Oil & Gas Integrated median
Debt to equity 3.07 0.14 0.55
Current ratio 0.57 0.74 1.18
Net debt to EBITDA 3.14 (0.22) 0.80

Dividend

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

Size

Metric DEC SKYQ Oil & Gas Integrated median
Market cap 1.10b 24.91m 51.12b

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