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 $52.3B against $23.3B — 2.2× the size. Diamondback Energy, Inc. trades at the lower P/E: 36.4× against 43.5×. Diamondback Energy, Inc. grew revenue faster over the last twelve months: 21.5% against 20.8%. Texas Pacific Land Corporation has the higher net margin (60.3% vs 8.58%) and the higher return on invested capital (29.5% vs 1.20%). Both pay a dividend; Diamondback Energy, Inc. yields more (5.25% vs 0.88%). Across the 23 metrics below, Diamondback Energy, Inc. leads on 12 and Texas Pacific Land Corporation on 11.

Valuation

Metric FANG TPL Oil & Gas E&P median
P/E 36.39 43.47 10.57
P/S 3.07 26.21 1.80
P/B 1.19 14.07 1.27
Price to free cash flow 5.99 61.09 9.99
EV/EBITDA 10.22 31.44 5.08
EV/Sales 3.78 25.93 2.39
Earnings yield 2.75% 2.30% 6.06%
Free cash flow yield 16.70% 1.64% 6.17%

Profitability

Metric FANG TPL Oil & Gas E&P median
Gross margin 84.75% 100.00% 80.41%
Operating margin 6.33% 74.92% 21.39%
Net margin 8.58% 60.32% 14.17%
Free cash flow margin 51.26% 42.90% 9.71%
Return on equity 3.38% 36.57% 10.05%
Return on assets 2.06% 33.17% 5.81%
Return on invested capital 1.20% 29.52% 6.32%

Growth

Metric FANG TPL Oil & Gas E&P median
Revenue growth (TTM) 21.45% 20.82% 9.94%
EPS growth (last fiscal year) (63.10%) 6.04% —
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 0.28
Current ratio 0.47 10.86 0.96
Net debt to EBITDA 2.28 (0.22) 0.91

Dividend

Metric FANG TPL Oil & Gas E&P median
Dividend yield 5.25% 0.88% 4.93%
Payout ratio 0.47 0.23 0.07

Size

Metric FANG TPL Oil & Gas E&P median
Market cap 52.34b 23.28b 923.59m

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