Kinetik Holdings Inc. (KNTK) vs Viper Energy Inc. (VNOM)

Kinetik Holdings Inc. and Viper Energy Inc. are both Oil & Gas Midstream companies. Viper Energy Inc. is the larger, with a market value of $14.4B against $8.0B — 1.8× the size. Kinetik Holdings Inc. trades at the lower P/E: 16.3× against 18.1×. Viper Energy Inc. grew revenue faster over the last twelve months: 92.1% against 15.8%. Viper Energy Inc. has the higher net margin (12.1% vs 0.00%) and the lower return on invested capital (4.01% vs 5.82%). Both pay a dividend; Kinetik Holdings Inc. yields more (6.57% vs 6.14%). Across the 22 metrics below, Kinetik Holdings Inc. leads on 12 and Viper Energy Inc. on 10.

Valuation

Metric KNTK VNOM Oil & Gas Midstream median
P/E 16.33 18.10 11.68
P/S 1.98 3.39 2.39
P/B n/m 0.74 1.68
Price to free cash flow 16.68 74.48 8.52
EV/EBITDA 12.85 9.84 9.03
EV/Sales 3.97 4.60 3.43
Earnings yield 6.12% 5.53% 7.78%
Free cash flow yield 6.00% 1.34% 7.11%

Profitability

Metric KNTK VNOM Oil & Gas Midstream median
Gross margin 41.01% 100.00% 54.87%
Operating margin 12.17% 36.16% 34.73%
Net margin 0.00% 12.08% 20.12%
Free cash flow margin 11.88% 4.55% 14.43%
Return on equity 0.00% 2.58% 11.73%
Return on assets 0.00% 2.07% 4.43%
Return on invested capital 5.82% 4.01% 6.10%

Growth

Metric KNTK VNOM Oil & Gas Midstream median
Revenue growth (TTM) 15.79% 92.09% 14.88%
EPS growth (last fiscal year) 157.84% (112.57%) (7.78%)
Revenue growth, 5-year CAGR 33.88% 40.96% 10.05%
Net income growth, 5-year CAGR 129.65% 0.00% 0.00%

Health

Metric KNTK VNOM Oil & Gas Midstream median
Debt to equity (2.93) 0.23 0.77
Current ratio 0.64 5.92 1.19
Net debt to EBITDA 6.79 4.65 3.46

Dividend

Metric KNTK VNOM Oil & Gas Midstream median
Dividend yield 6.57% 6.14% 4.94%
Payout ratio 1.08 1.12 0.73

Size

Metric KNTK VNOM Oil & Gas Midstream median
Market cap 7.98b 14.36b 3.56b

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