Flex LNG Ltd. (FLNG) vs Permian Basin Royalty Trust (PBT)

Flex LNG Ltd. and Permian Basin Royalty Trust are both Oil & Gas Midstream companies. Flex LNG Ltd. and Permian Basin Royalty Trust are of similar size ($1.4B and $1.3B). Flex LNG Ltd. trades at the lower P/E: 13.7× against 81.6×. Flex LNG Ltd. grew revenue faster over the last twelve months: 1.30% against −3.71%. Permian Basin Royalty Trust has the higher net margin (92.0% vs 28.5%) and the lower return on invested capital (0.00% vs 5.31%). Both pay a dividend; Flex LNG Ltd. yields more (11.5% vs 1.08%). Across the 21 metrics below, Flex LNG Ltd. leads on 15 and Permian Basin Royalty Trust on 6.

Valuation

Metric FLNG PBT Oil & Gas Midstream median
P/E 13.71 81.60 11.68
P/S 3.90 75.54 2.39
P/B 2.00 n/m 1.68
Price to free cash flow 8.79 n/m 8.52
EV/EBITDA 10.84 82.39 9.03
EV/Sales 7.78 75.42 3.43
Earnings yield 7.30% 1.23% 7.78%
Free cash flow yield 11.38% 0.00% 7.11%

Profitability

Metric FLNG PBT Oil & Gas Midstream median
Gross margin 73.34% 100.00% 54.87%
Operating margin 49.46% 91.54% 34.73%
Net margin 28.50% 91.96% 20.12%
Free cash flow margin 44.42% 0.00% 14.43%
Return on equity 14.03% 0.00% 11.73%
Return on assets 3.96% 757.27% 4.43%
Return on invested capital 5.31% 0.00% 6.10%

Growth

Metric FLNG PBT Oil & Gas Midstream median
Revenue growth (TTM) 1.30% (3.71%) 14.88%
EPS growth (last fiscal year) (36.70%) (43.64%) (7.78%)
Revenue growth, 5-year CAGR 16.15% 5.92% 10.05%
Net income growth, 5-year CAGR 55.97% 5.47% 0.00%

Health

Metric FLNG PBT Oil & Gas Midstream median
Debt to equity 2.55 0.00 0.77
Current ratio 2.69 1.00 1.19
Net debt to EBITDA 5.50 (0.12) 3.46

Dividend

Metric FLNG PBT Oil & Gas Midstream median
Dividend yield 11.52% 1.08% 4.94%
Payout ratio 1.58 0.88 0.73

Size

Metric FLNG PBT Oil & Gas Midstream median
Market cap 1.38b 1.33b 3.56b

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