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 $1.4B against $960.2M — 1.4× the size. Sabine Royalty Trust trades at the lower P/E: 13.4× against 13.7×. 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 (11.5% vs 6.86%). 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 13.71 13.40 11.80
P/S 3.91 12.70 2.38
P/B 2.00 n/m 1.65
Price to free cash flow 8.79 n/m 7.76
EV/EBITDA 10.84 13.27 7.88
EV/Sales 7.78 12.57 3.36
Earnings yield 7.29% 7.46% 7.98%
Free cash flow yield 11.38% 0.00% 7.23%

Profitability

Metric FLNG SBR Oil & Gas Midstream median
Gross margin 73.34% 100.00% 55.22%
Operating margin 49.46% 94.71% 35.83%
Net margin 28.50% 94.71% 20.12%
Free cash flow margin 44.42% 0.00% 14.43%
Return on equity 14.03% 0.00% 14.03%
Return on assets 3.96% 806.27% 4.62%
Return on invested capital 5.31% 0.00% 6.10%

Growth

Metric FLNG SBR Oil & Gas Midstream median
Revenue growth (TTM) 1.30% (2.95%) 15.70%
EPS growth (last fiscal year) (36.70%) (7.69%) (7.78%)
Revenue growth, 5-year CAGR 16.15% 16.35% 10.05%
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 0.77
Current ratio 2.69 7.25 1.16
Net debt to EBITDA 5.50 (0.10) 3.46

Dividend

Metric FLNG SBR Oil & Gas Midstream median
Dividend yield 11.52% 6.86% 5.03%
Payout ratio 1.58 0.92 0.73

Size

Metric FLNG SBR Oil & Gas Midstream median
Market cap 1.38b 960.20m 3.30b

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