Flex LNG Ltd. (FLNG) vs Sabine Royalty Trust (SBR)

Flex LNG Ltd. and Sabine Royalty Trust are both Oil & Gas Midstream companies. Flex LNG Ltd. is the larger, with a market value of $1.5B against $1.1B — 1.4× the size. Sabine Royalty Trust trades at the lower P/E: 14.8× against 14.8×. Flex LNG Ltd. grew revenue faster over the last twelve months: 1.30% against −2.95%. Sabine Royalty Trust has the higher net margin (94.7% 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 6.22%). Across the 21 metrics below, Sabine Royalty Trust leads on 11 and Flex LNG Ltd. on 10.

Valuation

Metric FLNG SBR Oil & Gas Midstream median
P/E 14.83 14.79 12.77
P/S 4.22 14.02 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 14.66 8.30
EV/Sales 8.10 13.89 3.88
Earnings yield 6.74% 6.76% 7.15%
Free cash flow yield 10.52% 0.00% 6.86%

Profitability

Metric FLNG SBR Oil & Gas Midstream median
Gross margin 73.34% 100.00% 56.58%
Operating margin 49.46% 94.71% 34.18%
Net margin 28.50% 94.71% 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% 806.27% 5.00%
Return on invested capital 5.31% 0.00% 6.13%

Growth

Metric FLNG SBR Oil & Gas Midstream median
Revenue growth (TTM) 1.30% (2.95%) 15.60%
EPS growth (last fiscal year) (36.70%) (7.69%) (7.86%)
Revenue growth, 5-year CAGR 16.15% 16.35% 9.59%
Net income growth, 5-year CAGR 55.97% 17.13% 0.00%

Health

Metric FLNG SBR Oil & Gas Midstream median
Debt to equity 2.55 0.00 0.78
Current ratio 2.69 7.25 1.19
Net debt to EBITDA 5.50 (0.10) 3.42

Dividend

Metric FLNG SBR Oil & Gas Midstream median
Dividend yield 10.65% 6.22% 4.54%
Payout ratio 1.58 0.92 0.76

Size

Metric FLNG SBR Oil & Gas Midstream median
Market cap 1.52b 1.05b 3.73b

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