Diamondback Energy, Inc. (FANG) vs Texas Pacific Land Corporation (TPL)

Diamondback Energy, Inc. and Texas Pacific Land Corporation are both Oil & Gas E&P companies. Diamondback Energy, Inc. is the larger, with a market value of $50.2B against $18.8B — 2.7× the size. Diamondback Energy, Inc. trades at the lower P/E: 22.7× against 32.3×. Texas Pacific Land Corporation grew revenue faster over the last twelve months: 25.3% against 21.1%. Texas Pacific Land Corporation has the higher net margin (60.7% vs 11.0%) and the higher return on invested capital (31.9% vs 2.54%). Both pay a dividend; Diamondback Energy, Inc. yields more (2.36% vs 0.85%). Across the 23 metrics below, Texas Pacific Land Corporation leads on 12 and Diamondback Energy, Inc. on 11.

Valuation

Metric FANG TPL Oil & Gas E&P median
P/E 22.67 32.34 9.67
P/S 2.71 19.63 1.76
P/B 1.12 10.54 1.19
Price to free cash flow 5.90 44.94 8.37
EV/EBITDA 8.28 23.09 4.59
EV/Sales 3.39 19.25 2.27
Earnings yield 4.41% 3.09% 7.55%
Free cash flow yield 16.94% 2.23% 3.98%

Profitability

Metric FANG TPL Oil & Gas E&P median
Gross margin 85.54% 100.00% 79.54%
Operating margin 12.61% 75.55% 24.01%
Net margin 11.03% 60.71% 14.11%
Free cash flow margin 45.89% 66.22% 7.72%
Return on equity 4.52% 37.07% 8.99%
Return on assets 2.77% 33.45% 4.63%
Return on invested capital 2.54% 31.90% 6.33%

Growth

Metric FANG TPL Oil & Gas E&P median
Revenue growth (TTM) 21.14% 25.30% 13.60%
EPS growth (last fiscal year) (63.10%) 6.04% (10.17%)
Revenue growth, 5-year CAGR 39.81% 21.41% 18.67%
Net income growth, 5-year CAGR 0.00% 22.28% 0.00%

Health

Metric FANG TPL Oil & Gas E&P median
Debt to equity 0.29 0.00 0.29
Current ratio 0.55 0.00 0.92
Net debt to EBITDA 2.28 (0.22) 0.93

Dividend

Metric FANG TPL Oil & Gas E&P median
Dividend yield 2.36% 0.85% 3.76%
Payout ratio 0.53 0.27 0.33

Size

Metric FANG TPL Oil & Gas E&P median
Market cap 50.15b 18.77b 953.29m

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