Ecopetrol S.A. (EC) vs YPF Sociedad Anonima (YPF)

Ecopetrol S.A. and YPF Sociedad Anonima are both Oil & Gas Integrated companies. Ecopetrol S.A. is the larger, with a market value of $32.0B against $15.2B — 2.1× the size. YPF Sociedad Anonima trades at the lower P/E: 7.1× against 8.2×. YPF Sociedad Anonima grew revenue faster over the last twelve months: 21.4% against −76.8%. Ecopetrol S.A. has the higher net margin (11.7% vs 9.42%) and the lower return on invested capital (9.16% vs 15.4%). Across the 22 metrics below, YPF Sociedad Anonima leads on 17 and Ecopetrol S.A. on 5.

Valuation

Metric EC YPF Oil & Gas Integrated median
P/E 8.22 7.13 8.49
P/S 0.99 0.67 1.00
P/B 1.50 1.09 1.34
Price to free cash flow 6.43 3.32 7.90
EV/EBITDA 4.72 2.64 4.07
EV/Sales 1.85 0.98 1.19
Earnings yield 12.17% 14.03% 11.52%
Free cash flow yield 15.55% 30.08% 8.19%

Profitability

Metric EC YPF Oil & Gas Integrated median
Gross margin 36.64% 38.57% 41.32%
Operating margin 27.60% 22.96% 16.71%
Net margin 11.72% 9.42% 9.96%
Free cash flow margin 15.34% 20.25% 11.34%
Return on equity 0.00% 16.62% 14.86%
Return on assets 5.27% 6.69% 6.69%
Return on invested capital 9.16% 15.42% 11.99%

Growth

Metric EC YPF Oil & Gas Integrated median
Revenue growth (TTM) (76.82%) 21.40% 12.44%
EPS growth (last fiscal year) (24.10%) (135.23%) (14.54%)
Revenue growth, 5-year CAGR (18.18%) 14.19% 12.04%
Net income growth, 5-year CAGR 0.34% 0.00% 0.00%

Health

Metric EC YPF Oil & Gas Integrated median
Debt to equity 0.96 0.76 0.53
Current ratio 1.51 1.24 1.19
Net debt to EBITDA 2.26 1.95 0.80

Dividend

Metric EC YPF Oil & Gas Integrated median
Dividend yield 4.18% — 3.90%
Payout ratio 0.34 — 0.40

Size

Metric EC YPF Oil & Gas Integrated median
Market cap 31.95b 15.20b 45.56b

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