Golar LNG Limited (GLNG) vs Scorpio Tankers Inc. (STNG)

Golar LNG Limited and Scorpio Tankers Inc. are both Oil & Gas Midstream companies. Golar LNG Limited is the larger, with a market value of $5.1B against $4.1B — 1.3× the size. Scorpio Tankers Inc. trades at the lower P/E: 4.6× against 31.4×. Golar LNG Limited grew revenue faster over the last twelve months: 59.7% against 32.7%. Scorpio Tankers Inc. has the higher net margin (67.2% vs 35.7%) and the higher return on invested capital (20.6% vs 3.71%). Both pay a dividend; Golar LNG Limited yields more (4.66% vs 1.78%). Across the 22 metrics below, Scorpio Tankers Inc. leads on 19 and Golar LNG Limited on 3.

Valuation

Metric GLNG STNG Oil & Gas Midstream median
P/E 31.40 4.64 13.19
P/S 11.08 3.07 2.60
P/B 2.29 1.03 2.08
Price to free cash flow n/m 2.13 10.14
EV/EBITDA 22.86 2.60 8.11
EV/Sales 14.74 2.16 3.89
Earnings yield 3.18% 21.54% 6.83%
Free cash flow yield (8.71%) 46.89% 6.94%

Profitability

Metric GLNG STNG Oil & Gas Midstream median
Gross margin 65.48% 72.97% 58.81%
Operating margin 50.45% 68.57% 32.14%
Net margin 35.65% 67.16% 21.16%
Free cash flow margin (96.52%) 144.00% 10.15%
Return on equity 7.21% 24.62% 11.30%
Return on assets 6.05% 18.95% 5.00%
Return on invested capital 3.71% 20.59% 6.13%

Growth

Metric GLNG STNG Oil & Gas Midstream median
Revenue growth (TTM) 59.70% 32.68% 15.44%
EPS growth (last fiscal year) 35.42% (46.54%) —
Revenue growth, 5-year CAGR (2.15%) 0.48% 8.96%
Net income growth, 5-year CAGR 0.00% 29.61% 0.00%

Health

Metric GLNG STNG Oil & Gas Midstream median
Debt to equity 1.22 0.20 0.78
Current ratio 2.34 6.93 1.19
Net debt to EBITDA 9.20 (0.28) 3.42

Dividend

Metric GLNG STNG Oil & Gas Midstream median
Dividend yield 4.66% 1.78% 7.29%
Payout ratio 0.27 0.05 0.64

Size

Metric GLNG STNG Oil & Gas Midstream median
Market cap 5.10b 4.05b 3.61b

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