Dorchester Minerals, L.P. (DMLP) vs Vermilion Energy Inc. (VET)

Dorchester Minerals, L.P. and Vermilion Energy Inc. are both Oil & Gas E&P companies. Vermilion Energy Inc. is the larger, with a market value of $1.8B against $1.4B — 1.3× the size. Vermilion Energy Inc. has negative trailing earnings, so its P/E is not meaningful; Dorchester Minerals, L.P. trades at 16.5×. Dorchester Minerals, L.P. grew revenue faster over the last twelve months: 13.9% against −5.20%. Dorchester Minerals, L.P. has the higher net margin (43.9% vs −24.5%) and the higher return on invested capital (23.6% vs 5.93%). Both pay a dividend; Dorchester Minerals, L.P. yields more (11.8% vs 2.93%). Across the 22 metrics below, Dorchester Minerals, L.P. leads on 16 and Vermilion Energy Inc. on 6.

Valuation

Metric DMLP VET Oil & Gas E&P median
P/E 16.50 n/m 10.57
P/S 7.29 1.37 1.80
P/B 4.61 1.14 1.27
Price to free cash flow 8.93 3.01 9.99
EV/EBITDA 10.70 3.62 5.08
EV/Sales 6.91 2.09 2.39
Earnings yield 6.06% (18.02%) 6.06%
Free cash flow yield 11.20% 33.17% 6.17%

Profitability

Metric DMLP VET Oil & Gas E&P median
Gross margin 100.00% 62.13% 80.41%
Operating margin 45.45% 18.12% 21.39%
Net margin 43.92% (24.50%) 14.17%
Free cash flow margin 81.52% 45.31% 9.71%
Return on equity 27.08% (18.15%) 10.05%
Return on assets 26.40% (7.23%) 5.81%
Return on invested capital 23.62% 5.93% 6.32%

Growth

Metric DMLP VET Oil & Gas E&P median
Revenue growth (TTM) 13.91% (5.20%) 9.94%
EPS growth (last fiscal year) (45.54%) (1,281.82%) —
Revenue growth, 5-year CAGR 26.64% 8.21% 18.67%
Net income growth, 5-year CAGR 21.16% 0.00% 0.00%

Health

Metric DMLP VET Oil & Gas E&P median
Debt to equity 0.00 0.63 0.28
Current ratio 13.85 1.00 0.96
Net debt to EBITDA (0.34) 1.30 0.91

Dividend

Metric DMLP VET Oil & Gas E&P median
Dividend yield 11.76% 2.93% 4.93%
Payout ratio — 0.05 0.07

Size

Metric DMLP VET Oil & Gas E&P median
Market cap 1.44b 1.82b 923.59m

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