Dorchester Minerals, L.P. (DMLP) vs Kimbell Royalty (KRP)

Dorchester Minerals, L.P. and Kimbell Royalty are both Oil & Gas E&P companies. Kimbell Royalty is the larger, with a market value of $1.9B against $1.3B — 1.4× the size. Dorchester Minerals, L.P. trades at the lower P/E: 13.2× against 19.6×. Dorchester Minerals, L.P. grew revenue faster over the last twelve months: 38.2% against 9.03%. Dorchester Minerals, L.P. has the higher net margin (48.1% vs 21.3%) and the higher return on invested capital (27.7% vs 6.79%). Both pay a dividend; Dorchester Minerals, L.P. yields more (12.4% vs 10.6%). Across the 22 metrics below, Dorchester Minerals, L.P. leads on 16 and Kimbell Royalty on 6.

Valuation

Metric DMLP KRP Oil & Gas E&P median
P/E 13.24 19.61 9.67
P/S 6.42 4.34 1.76
P/B 4.62 1.93 1.19
Price to free cash flow 8.08 12.67 8.37
EV/EBITDA 10.32 7.67 4.59
EV/Sales 6.16 5.79 2.27
Earnings yield 7.55% 5.10% 7.55%
Free cash flow yield 12.38% 7.89% 3.98%

Profitability

Metric DMLP KRP Oil & Gas E&P median
Gross margin 100.00% 100.00% 79.54%
Operating margin 49.84% 40.20% 24.01%
Net margin 48.10% 21.31% 14.11%
Free cash flow margin 79.43% 34.30% 7.72%
Return on equity 32.66% 10.51% 8.99%
Return on assets 31.74% 5.35% 4.63%
Return on invested capital 27.71% 6.79% 6.33%

Growth

Metric DMLP KRP Oil & Gas E&P median
Revenue growth (TTM) 38.18% 9.03% 13.60%
EPS growth (last fiscal year) (45.54%) 616.67% (10.17%)
Revenue growth, 5-year CAGR 26.64% 29.84% 18.67%
Net income growth, 5-year CAGR 21.16% 0.00% 0.00%

Health

Metric DMLP KRP Oil & Gas E&P median
Debt to equity 0.00 0.69 0.29
Current ratio 10.60 3.79 0.92
Net debt to EBITDA (0.34) 1.53 0.93

Dividend

Metric DMLP KRP Oil & Gas E&P median
Dividend yield 12.36% 10.60% 3.76%
Payout ratio 1.64 2.08 0.33

Size

Metric DMLP KRP Oil & Gas E&P median
Market cap 1.34b 1.93b 953.29m

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