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 $1.6B against $1.3B — 1.2× the size. Vermilion Energy Inc. has negative trailing earnings, so its P/E is not meaningful; Dorchester Minerals, L.P. trades at 13.2×. Dorchester Minerals, L.P. grew revenue faster over the last twelve months: 38.2% against −5.20%. Dorchester Minerals, L.P. has the higher net margin (48.1% vs −24.5%) and the higher return on invested capital (27.7% vs 5.93%). Both pay a dividend; Dorchester Minerals, L.P. yields more (12.4% vs 3.66%). 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 13.24 n/m 9.67
P/S 6.42 1.24 1.76
P/B 4.62 1.04 1.19
Price to free cash flow 8.08 2.74 8.37
EV/EBITDA 10.32 3.62 4.59
EV/Sales 6.16 2.09 2.27
Earnings yield 7.55% (19.79%) 7.55%
Free cash flow yield 12.38% 36.44% 3.98%

Profitability

Metric DMLP VET Oil & Gas E&P median
Gross margin 100.00% 62.13% 79.54%
Operating margin 49.84% 18.12% 24.01%
Net margin 48.10% (24.50%) 14.11%
Free cash flow margin 79.43% 45.31% 7.72%
Return on equity 32.66% (18.15%) 8.99%
Return on assets 31.74% (7.23%) 4.63%
Return on invested capital 27.71% 5.93% 6.33%

Growth

Metric DMLP VET Oil & Gas E&P median
Revenue growth (TTM) 38.18% (5.20%) 13.60%
EPS growth (last fiscal year) (45.54%) (1,281.82%) (10.17%)
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 0.29
Current ratio 10.60 1.00 0.92
Net debt to EBITDA (0.34) 1.30 0.93

Dividend

Metric DMLP VET Oil & Gas E&P median
Dividend yield 12.36% 3.66% 3.76%
Payout ratio 1.64 — 0.33

Size

Metric DMLP VET Oil & Gas E&P median
Market cap 1.34b 1.61b 953.29m

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