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 $47.2B against $18.8B — 2.5× the size. Devon Energy Corporation trades at the lower P/E: 10.2× against 32.3×. Texas Pacific Land Corporation grew revenue faster over the last twelve months: 25.3% against 14.6%. Texas Pacific Land Corporation has the higher net margin (60.7% vs 16.7%) and the higher return on invested capital (31.9% vs 5.05%). Both pay a dividend; Devon Energy Corporation yields more (2.60% vs 0.85%). Across the 23 metrics below, Texas Pacific Land Corporation leads on 12 and Devon Energy Corporation on 11.

Valuation

Metric DVN TPL Oil & Gas E&P median
P/E 10.18 32.34 9.67
P/S 2.05 19.63 1.76
P/B 0.97 10.54 1.19
Price to free cash flow 25.10 44.94 8.37
EV/EBITDA 6.11 23.09 4.59
EV/Sales 2.58 19.25 2.27
Earnings yield 9.83% 3.09% 7.55%
Free cash flow yield 3.98% 2.23% 3.98%

Profitability

Metric DVN TPL Oil & Gas E&P median
Gross margin 79.45% 100.00% 79.54%
Operating margin 21.39% 75.55% 24.01%
Net margin 16.67% 60.71% 14.11%
Free cash flow margin 8.17% 66.22% 7.72%
Return on equity 11.50% 37.07% 8.99%
Return on assets 6.41% 33.45% 4.63%
Return on invested capital 5.05% 31.90% 6.33%

Growth

Metric DVN TPL Oil & Gas E&P median
Revenue growth (TTM) 14.64% 25.30% 13.60%
EPS growth (last fiscal year) (8.55%) 6.04% (10.17%)
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 0.29
Current ratio 0.72 0.00 0.92
Net debt to EBITDA 0.99 (0.22) 0.93

Dividend

Metric DVN TPL Oil & Gas E&P median
Dividend yield 2.60% 0.85% 3.76%
Payout ratio 0.27 0.27 0.33

Size

Metric DVN TPL Oil & Gas E&P median
Market cap 47.17b 18.77b 953.29m

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