Epsilon Energy Ltd. (EPSN) vs PrimeEnergy Corporation (PNRG)

Epsilon Energy Ltd. and PrimeEnergy Corporation are both Oil & Gas E&P companies. PrimeEnergy Corporation is the larger, with a market value of $286.2M against $158.1M — 1.8× the size. Epsilon Energy Ltd. has negative trailing earnings, so its P/E is not meaningful; PrimeEnergy Corporation trades at 12.1×. Epsilon Energy Ltd. grew revenue faster over the last twelve months: 53.7% against −19.4%. PrimeEnergy Corporation has the higher net margin (13.9% vs −5.18%) and the higher return on invested capital (9.18% vs 0.26%). Across the 19 metrics below, PrimeEnergy Corporation leads on 16 and Epsilon Energy Ltd. on 3.

Valuation

Metric EPSN PNRG Oil & Gas E&P median
P/E n/m 12.14 9.67
P/S 2.36 1.66 1.76
P/B 1.23 1.36 1.19
Price to free cash flow n/m 5.96 8.37
EV/EBITDA 15.58 2.93 4.59
EV/Sales 2.79 1.58 2.27
Earnings yield (3.80%) 8.23% 7.55%
Free cash flow yield (19.39%) 16.79% 3.98%

Profitability

Metric EPSN PNRG Oil & Gas E&P median
Gross margin 96.60% 68.29% 79.54%
Operating margin 0.99% 15.75% 24.01%
Net margin (5.18%) 13.87% 14.11%
Free cash flow margin (45.69%) 27.95% 7.72%
Return on equity (3.05%) 11.72% 8.99%
Return on assets (1.95%) 7.54% 4.63%
Return on invested capital 0.26% 9.18% 6.33%

Growth

Metric EPSN PNRG Oil & Gas E&P median
Revenue growth (TTM) 53.71% (19.43%) 13.60%
EPS growth (last fiscal year) (377.78%) (50.52%) (10.17%)
Revenue growth, 5-year CAGR 16.13% 26.47% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric EPSN PNRG Oil & Gas E&P median
Debt to equity 0.31 0.01 0.29
Current ratio 0.96 1.49 0.92
Net debt to EBITDA 24.47 (0.07) 0.93

Dividend

Metric EPSN PNRG Oil & Gas E&P median
Dividend yield 4.74% — 3.76%
Payout ratio — — 0.33

Size

Metric EPSN PNRG Oil & Gas E&P median
Market cap 158.08m 286.20m 953.29m

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