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 $1.5B — 1.2× the size. NGL Energy Partners LP has negative trailing earnings, so its P/E is not meaningful; Flex LNG Ltd. trades at 14.8×. 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 14.83 n/m 12.77
P/S 4.22 0.54 2.36
P/B 2.17 n/m 2.09
Price to free cash flow 9.51 18.62 9.71
EV/EBITDA 11.29 12.66 8.30
EV/Sales 8.10 1.47 3.88
Earnings yield 6.74% (18.68%) 7.15%
Free cash flow yield 10.52% 5.37% 6.86%

Profitability

Metric FLNG NGL Oil & Gas Midstream median
Gross margin 73.34% 29.52% 56.58%
Operating margin 49.46% 4.05% 34.18%
Net margin 28.50% (9.96%) 22.50%
Free cash flow margin 44.42% 2.89% 13.70%
Return on equity 14.03% 88.77% 14.65%
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% 15.60%
EPS growth (last fiscal year) (36.70%) (431.67%) (7.86%)
Revenue growth, 5-year CAGR 16.15% (9.60%) 9.59%
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 10.65% — 4.54%
Payout ratio 1.58 — 0.76

Size

Metric FLNG NGL Oil & Gas Midstream median
Market cap 1.52b 1.85b 3.73b

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