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 $1.4B — 1.3× the size. Dorchester Minerals, L.P. trades at the lower P/E: 16.5× against 17.3×. Dorchester Minerals, L.P. grew revenue faster over the last twelve months: 13.9% against 6.17%. Dorchester Minerals, L.P. has the higher net margin (43.9% vs 23.0%) and the higher return on invested capital (23.6% vs 7.76%). Both pay a dividend; Dorchester Minerals, L.P. yields more (11.8% vs 11.3%). Across the 22 metrics below, Dorchester Minerals, L.P. leads on 14 and Kimbell Royalty on 8.

Valuation

Metric DMLP KRP Oil & Gas E&P median
P/E 16.50 17.35 10.57
P/S 7.29 4.11 1.80
P/B 4.61 2.10 1.27
Price to free cash flow 8.93 7.26 9.99
EV/EBITDA 10.70 7.01 5.08
EV/Sales 6.91 5.39 2.39
Earnings yield 6.06% 5.77% 6.06%
Free cash flow yield 11.20% 13.77% 6.17%

Profitability

Metric DMLP KRP Oil & Gas E&P median
Gross margin 100.00% 100.00% 80.41%
Operating margin 45.45% 40.15% 21.39%
Net margin 43.92% 23.03% 14.17%
Free cash flow margin 81.52% 56.63% 9.71%
Return on equity 27.08% 11.97% 10.05%
Return on assets 26.40% 6.02% 5.81%
Return on invested capital 23.62% 7.76% 6.32%

Growth

Metric DMLP KRP Oil & Gas E&P median
Revenue growth (TTM) 13.91% 6.17% 9.94%
EPS growth (last fiscal year) (45.54%) 616.67% —
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 0.72 0.28
Current ratio 13.85 7.30 0.96
Net debt to EBITDA (0.34) 1.53 0.91

Dividend

Metric DMLP KRP Oil & Gas E&P median
Dividend yield 11.76% 11.33% 4.93%
Payout ratio — 1.03 0.07

Size

Metric DMLP KRP Oil & Gas E&P median
Market cap 1.44b 1.90b 923.59m

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