Devon Energy Corporation (DVN) vs Texas Pacific Land Corporation (TPL)

Devon Energy Corporation and Texas Pacific Land Corporation are both Oil & Gas E&P companies. Devon Energy Corporation is the larger, with a market value of $53.3B against $23.3B — 2.3× the size. Devon Energy Corporation trades at the lower P/E: 11.1× against 43.5×. Texas Pacific Land Corporation grew revenue faster over the last twelve months: 20.8% against 14.6%. Texas Pacific Land Corporation has the higher net margin (60.3% vs 16.7%) and the higher return on invested capital (29.5% vs 5.05%). Both pay a dividend; Devon Energy Corporation yields more (6.72% vs 0.88%). Across the 23 metrics below, Texas Pacific Land Corporation leads on 13 and Devon Energy Corporation on 10.

Valuation

Metric DVN TPL Oil & Gas E&P median
P/E 11.12 43.47 10.57
P/S 2.24 26.21 1.80
P/B 1.06 14.07 1.27
Price to free cash flow 27.43 61.09 9.99
EV/EBITDA 6.56 31.44 5.08
EV/Sales 2.77 25.93 2.39
Earnings yield 8.99% 2.30% 6.06%
Free cash flow yield 3.65% 1.64% 6.17%

Profitability

Metric DVN TPL Oil & Gas E&P median
Gross margin 79.45% 100.00% 80.41%
Operating margin 21.39% 74.92% 21.39%
Net margin 16.67% 60.32% 14.17%
Free cash flow margin 8.17% 42.90% 9.71%
Return on equity 11.50% 36.57% 10.05%
Return on assets 6.41% 33.17% 5.81%
Return on invested capital 5.05% 29.52% 6.32%

Growth

Metric DVN TPL Oil & Gas E&P median
Revenue growth (TTM) 14.64% 20.82% 9.94%
EPS growth (last fiscal year) (8.55%) 6.04% —
Revenue growth, 5-year CAGR 28.91% 21.41% 18.67%
Net income growth, 5-year CAGR 0.00% 22.28% 0.00%

Health

Metric DVN TPL Oil & Gas E&P median
Debt to equity 0.27 0.00 0.28
Current ratio 0.72 10.86 0.96
Net debt to EBITDA 0.99 (0.22) 0.91

Dividend

Metric DVN TPL Oil & Gas E&P median
Dividend yield 6.72% 0.88% 4.93%
Payout ratio 0.62 0.23 0.07

Size

Metric DVN TPL Oil & Gas E&P median
Market cap 53.28b 23.28b 923.59m

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