Flex LNG Ltd. (FLNG) vs Dorian LPG Ltd. (LPG)

Flex LNG Ltd. and Dorian LPG Ltd. are both Oil & Gas Midstream companies. Dorian LPG Ltd. is the larger, with a market value of $2.3B against $1.7B — 1.4× the size. Dorian LPG Ltd. trades at the lower P/E: 7.1× against 16.3×. Dorian LPG Ltd. grew revenue faster over the last twelve months: 81.1% against 1.30%. Dorian LPG Ltd. has the higher net margin (55.0% vs 28.5%) and the higher return on invested capital (15.0% vs 5.31%). Both pay a dividend; Flex LNG Ltd. yields more (11.5% vs 9.37%). Across the 23 metrics below, Dorian LPG Ltd. leads on 19 and Flex LNG Ltd. on 4.

Valuation

Metric FLNG LPG Oil & Gas Midstream median
P/E 16.26 7.06 13.19
P/S 4.63 3.89 2.60
P/B 2.38 1.84 2.08
Price to free cash flow 10.43 9.90 10.14
EV/EBITDA 11.86 5.95 8.11
EV/Sales 8.51 4.17 3.89
Earnings yield 6.15% 14.17% 6.83%
Free cash flow yield 9.59% 10.10% 6.94%

Profitability

Metric FLNG LPG Oil & Gas Midstream median
Gross margin 73.34% 85.68% 58.81%
Operating margin 49.46% 57.63% 32.14%
Net margin 28.50% 55.00% 21.16%
Free cash flow margin 44.42% 39.23% 10.15%
Return on equity 14.03% 28.34% 11.30%
Return on assets 3.96% 17.63% 5.00%
Return on invested capital 5.31% 15.04% 6.13%

Growth

Metric FLNG LPG Oil & Gas Midstream median
Revenue growth (TTM) 1.30% 81.06% 15.44%
EPS growth (last fiscal year) (36.70%) 112.15% —
Revenue growth, 5-year CAGR 16.15% 8.79% 8.96%
Net income growth, 5-year CAGR 55.97% 15.91% 0.00%

Health

Metric FLNG LPG Oil & Gas Midstream median
Debt to equity 2.55 0.41 0.78
Current ratio 2.69 3.26 1.19
Net debt to EBITDA 5.50 0.82 3.42

Dividend

Metric FLNG LPG Oil & Gas Midstream median
Dividend yield 11.51% 9.37% 7.29%
Payout ratio 1.12 0.81 0.64

Size

Metric FLNG LPG Oil & Gas Midstream median
Market cap 1.65b 2.31b 3.61b

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