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 $15.0B against $8.5B — 1.8× the size. Kinetik Holdings Inc. trades at the lower P/E: 18.4× against 292×. Viper Energy Inc. grew revenue faster over the last twelve months: 107.8% against 14.2%. Kinetik Holdings Inc. has the higher net margin (10.4% vs 2.89%) and the higher return on invested capital (4.47% vs 1.32%). Both pay a dividend; Kinetik Holdings Inc. yields more (9.21% vs 6.49%). Across the 22 metrics below, Kinetik Holdings Inc. leads on 11 and Viper Energy Inc. on 11.

Valuation

Metric KNTK VNOM Oil & Gas Midstream median
P/E 18.35 292.36 13.19
P/S 2.04 3.89 2.60
P/B n/m 0.77 2.08
Price to free cash flow 31.19 10.38 10.14
EV/EBITDA 12.69 9.28 8.11
EV/Sales 4.14 4.86 3.89
Earnings yield 5.45% 0.34% 6.83%
Free cash flow yield 3.21% 9.63% 6.94%

Profitability

Metric KNTK VNOM Oil & Gas Midstream median
Gross margin 40.92% 100.00% 58.81%
Operating margin 10.52% 12.30% 32.14%
Net margin 10.41% 2.89% 21.16%
Free cash flow margin 6.54% 37.43% 10.15%
Return on equity (14.28%) 0.62% 11.30%
Return on assets 2.74% 0.54% 5.00%
Return on invested capital 4.47% 1.32% 6.13%

Growth

Metric KNTK VNOM Oil & Gas Midstream median
Revenue growth (TTM) 14.15% 107.84% 15.44%
EPS growth (last fiscal year) 157.84% (112.57%) —
Revenue growth, 5-year CAGR 33.88% 40.96% 8.96%
Net income growth, 5-year CAGR 126.35% 0.00% 0.00%

Health

Metric KNTK VNOM Oil & Gas Midstream median
Debt to equity (3.34) 0.16 0.78
Current ratio 0.68 6.37 1.19
Net debt to EBITDA 6.79 4.65 3.42

Dividend

Metric KNTK VNOM Oil & Gas Midstream median
Dividend yield 9.21% 6.49% 7.29%
Payout ratio 1.79 — 0.64

Size

Metric KNTK VNOM Oil & Gas Midstream median
Market cap 8.53b 14.96b 3.61b

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