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 $1.9B against $1.5B — 1.3× the size. Vermilion Energy Inc. has negative trailing earnings, so its P/E is not meaningful; Dorchester Minerals, L.P. trades at 17.3×. 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 (10.5% 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 17.29 n/m 11.01
P/S 7.64 1.55 1.98
P/B 4.84 1.29 1.30
Price to free cash flow 9.36 3.43 10.68
EV/EBITDA 11.24 4.16 5.09
EV/Sales 7.26 2.40 2.63
Earnings yield 5.78% (15.83%) 5.78%
Free cash flow yield 10.69% 29.15% 4.91%

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% 8.18%
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%) (10.50%)
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 0.89

Dividend

Metric DMLP VET Oil & Gas E&P median
Dividend yield 10.49% 2.93% 3.29%
Payout ratio 1.81 — 0.35

Size

Metric DMLP VET Oil & Gas E&P median
Market cap 1.47b 1.93b 1.04b

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