Flex LNG Ltd. (FLNG) vs NGL Energy Partners LP (NGL)

Flex LNG Ltd. and NGL Energy Partners LP are both Oil & Gas Midstream companies. NGL Energy Partners LP is the larger, with a market value of $1.9B against $1.7B — 1.2× the size. NGL Energy Partners LP has negative trailing earnings, so its P/E is not meaningful; Flex LNG Ltd. trades at 16.3×. NGL Energy Partners LP grew revenue faster over the last twelve months: 5.76% against 1.30%. Flex LNG Ltd. has the higher net margin (28.5% vs −9.96%) and the higher return on invested capital (5.31% vs 2.94%). Across the 20 metrics below, Flex LNG Ltd. leads on 15 and NGL Energy Partners LP on 5.

Valuation

Metric FLNG NGL Oil & Gas Midstream median
P/E 16.26 n/m 13.19
P/S 4.63 0.53 2.60
P/B 2.38 n/m 2.08
Price to free cash flow 10.43 18.50 10.14
EV/EBITDA 11.86 12.63 8.11
EV/Sales 8.51 1.46 3.89
Earnings yield 6.15% (18.81%) 6.83%
Free cash flow yield 9.59% 5.41% 6.94%

Profitability

Metric FLNG NGL Oil & Gas Midstream median
Gross margin 73.34% 29.52% 58.81%
Operating margin 49.46% 4.05% 32.14%
Net margin 28.50% (9.96%) 21.16%
Free cash flow margin 44.42% 2.89% 10.15%
Return on equity 14.03% 88.77% 11.30%
Return on assets 3.96% (8.39%) 5.00%
Return on invested capital 5.31% 2.94% 6.13%

Growth

Metric FLNG NGL Oil & Gas Midstream median
Revenue growth (TTM) 1.30% 5.76% 15.44%
EPS growth (last fiscal year) (36.70%) (431.67%) —
Revenue growth, 5-year CAGR 16.15% (9.60%) 8.96%
Net income growth, 5-year CAGR 55.97% 0.00% 0.00%

Health

Metric FLNG NGL Oil & Gas Midstream median
Debt to equity 2.55 (13.85) 0.78
Current ratio 2.69 1.14 1.19
Net debt to EBITDA 5.50 8.88 3.42

Dividend

Metric FLNG NGL Oil & Gas Midstream median
Dividend yield 11.51% — 7.29%
Payout ratio 1.12 — 0.64

Size

Metric FLNG NGL Oil & Gas Midstream median
Market cap 1.65b 1.92b 3.61b

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