Flex LNG Ltd. (FLNG) vs Navigator Holdings Ltd. (NVGS)

Flex LNG Ltd. and Navigator Holdings Ltd. are both Oil & Gas Midstream companies. Flex LNG Ltd. is the larger, with a market value of $1.7B against $1.4B — 1.1× the size. Navigator Holdings Ltd. trades at the lower P/E: 10.5× against 16.3×. Navigator Holdings Ltd. grew revenue faster over the last twelve months: 8.39% against 1.30%. Flex LNG Ltd. has the higher net margin (28.5% vs 22.8%) and the higher return on invested capital (5.31% vs 5.16%). Both pay a dividend; Flex LNG Ltd. yields more (11.5% vs 1.11%). Across the 23 metrics below, Navigator Holdings Ltd. leads on 13 and Flex LNG Ltd. on 10.

Valuation

Metric FLNG NVGS Oil & Gas Midstream median
P/E 16.26 10.51 13.19
P/S 4.63 2.31 2.60
P/B 2.38 1.12 2.08
Price to free cash flow 10.43 6.97 10.14
EV/EBITDA 11.86 7.11 8.11
EV/Sales 8.51 3.36 3.89
Earnings yield 6.15% 9.51% 6.83%
Free cash flow yield 9.59% 14.36% 6.94%

Profitability

Metric FLNG NVGS Oil & Gas Midstream median
Gross margin 73.34% 54.61% 58.81%
Operating margin 49.46% 25.77% 32.14%
Net margin 28.50% 22.80% 21.16%
Free cash flow margin 44.42% 33.14% 10.15%
Return on equity 14.03% 11.09% 11.30%
Return on assets 3.96% 5.96% 5.00%
Return on invested capital 5.31% 5.16% 6.13%

Growth

Metric FLNG NVGS Oil & Gas Midstream median
Revenue growth (TTM) 1.30% 8.39% 15.44%
EPS growth (last fiscal year) (36.70%) 23.53% —
Revenue growth, 5-year CAGR 16.15% 12.04% 8.96%
Net income growth, 5-year CAGR 55.97% 0.00% 0.00%

Health

Metric FLNG NVGS Oil & Gas Midstream median
Debt to equity 2.55 0.72 0.78
Current ratio 2.69 1.71 1.19
Net debt to EBITDA 5.50 2.48 3.42

Dividend

Metric FLNG NVGS Oil & Gas Midstream median
Dividend yield 11.51% 1.11% 7.29%
Payout ratio 1.12 0.00 0.64

Size

Metric FLNG NVGS Oil & Gas Midstream median
Market cap 1.65b 1.44b 3.61b

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