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 $1.7B against $1.1B — 1.6× the size. Sabine Royalty Trust trades at the lower P/E: 14.7× against 16.3×. 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 9.97%). 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 16.26 14.65 13.19
P/S 4.63 13.88 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 14.52 8.11
EV/Sales 8.51 13.75 3.89
Earnings yield 6.15% 6.83% 6.83%
Free cash flow yield 9.59% 0.00% 6.94%

Profitability

Metric FLNG SBR Oil & Gas Midstream median
Gross margin 73.34% 100.00% 58.81%
Operating margin 49.46% 94.71% 32.14%
Net margin 28.50% 94.71% 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% 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%) 15.44%
EPS growth (last fiscal year) (36.70%) (7.69%) —
Revenue growth, 5-year CAGR 16.15% 16.35% 8.96%
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 11.51% 9.97% 7.29%
Payout ratio 1.12 1.00 0.64

Size

Metric FLNG SBR Oil & Gas Midstream median
Market cap 1.65b 1.06b 3.61b

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