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 ($1.6B and $1.5B). Flex LNG Ltd. trades at the lower P/E: 14.8× against 94.7×. 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 (10.7% vs 0.91%). 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 14.83 94.69 12.77
P/S 4.22 87.66 2.36
P/B 2.17 n/m 2.09
Price to free cash flow 9.51 n/m 9.71
EV/EBITDA 11.29 95.62 8.30
EV/Sales 8.10 87.53 3.88
Earnings yield 6.74% 1.06% 7.15%
Free cash flow yield 10.52% 0.00% 6.86%

Profitability

Metric FLNG PBT Oil & Gas Midstream median
Gross margin 73.34% 100.00% 56.58%
Operating margin 49.46% 91.54% 34.18%
Net margin 28.50% 91.96% 22.50%
Free cash flow margin 44.42% 0.00% 13.70%
Return on equity 14.03% 0.00% 14.65%
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%) 15.60%
EPS growth (last fiscal year) (36.70%) (43.64%) (7.86%)
Revenue growth, 5-year CAGR 16.15% 5.92% 9.59%
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 10.65% 0.91% 4.54%
Payout ratio 1.58 0.86 0.76

Size

Metric FLNG PBT Oil & Gas Midstream median
Market cap 1.52b 1.57b 3.73b

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