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 ($1.7B and $1.6B). Flex LNG Ltd. trades at the lower P/E: 16.3× against 96.4×. 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 4.49%). 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 16.26 96.37 13.19
P/S 4.63 89.22 2.60
P/B 2.38 n/m 2.08
Price to free cash flow 10.43 n/m 10.14
EV/EBITDA 11.86 97.32 8.11
EV/Sales 8.51 89.09 3.89
Earnings yield 6.15% 1.04% 6.83%
Free cash flow yield 9.59% 0.00% 6.94%

Profitability

Metric FLNG PBT Oil & Gas Midstream median
Gross margin 73.34% 100.00% 58.81%
Operating margin 49.46% 91.54% 32.14%
Net margin 28.50% 91.96% 21.16%
Free cash flow margin 44.42% 0.00% 10.15%
Return on equity 14.03% 0.00% 11.30%
Return on assets 3.96% 757.27% 5.00%
Return on invested capital 5.31% 0.00% 6.13%

Growth

Metric FLNG PBT Oil & Gas Midstream median
Revenue growth (TTM) 1.30% (3.71%) 15.44%
EPS growth (last fiscal year) (36.70%) (43.64%) —
Revenue growth, 5-year CAGR 16.15% 5.92% 8.96%
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 0.78
Current ratio 2.69 1.00 1.19
Net debt to EBITDA 5.50 (0.12) 3.42

Dividend

Metric FLNG PBT Oil & Gas Midstream median
Dividend yield 11.51% 4.49% 7.29%
Payout ratio 1.12 1.00 0.64

Size

Metric FLNG PBT Oil & Gas Midstream median
Market cap 1.65b 1.57b 3.61b

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