Kosmos Energy Ltd. (KOS) vs Kimbell Royalty (KRP)

Kosmos Energy Ltd. and Kimbell Royalty are both Oil & Gas E&P companies. Kimbell Royalty is the larger, with a market value of $1.9B against $1.7B — 1.1× the size. Kosmos Energy Ltd. has negative trailing earnings, so its P/E is not meaningful; Kimbell Royalty trades at 17.3×. Kosmos Energy Ltd. grew revenue faster over the last twelve months: 7.13% against 6.17%. Kimbell Royalty has the higher net margin (23.0% vs −34.0%) and the higher return on invested capital (7.76% vs 2.91%). Across the 20 metrics below, Kimbell Royalty leads on 16 and Kosmos Energy Ltd. on 4.

Valuation

Metric KOS KRP Oil & Gas E&P median
P/E n/m 17.35 10.57
P/S 0.99 4.11 1.80
P/B 2.23 2.10 1.27
Price to free cash flow 14.14 7.26 9.99
EV/EBITDA 6.00 7.01 5.08
EV/Sales 2.58 5.39 2.39
Earnings yield (44.91%) 5.77% 6.06%
Free cash flow yield 7.07% 13.77% 6.17%

Profitability

Metric KOS KRP Oil & Gas E&P median
Gross margin 47.27% 100.00% 80.41%
Operating margin 9.48% 40.15% 21.39%
Net margin (33.98%) 23.03% 14.17%
Free cash flow margin 6.97% 56.63% 9.71%
Return on equity (62.95%) 11.97% 10.05%
Return on assets (11.39%) 6.02% 5.81%
Return on invested capital 2.91% 7.76% 6.32%

Growth

Metric KOS KRP Oil & Gas E&P median
Revenue growth (TTM) 7.13% 6.17% 9.94%
EPS growth (last fiscal year) (467.50%) 616.67% —
Revenue growth, 5-year CAGR 7.58% 29.84% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric KOS KRP Oil & Gas E&P median
Debt to equity 3.79 0.72 0.28
Current ratio 0.59 7.30 0.96
Net debt to EBITDA 10.18 1.53 0.91

Dividend

Metric KOS KRP Oil & Gas E&P median
Dividend yield — 11.33% 4.93%
Payout ratio 0.00 1.03 0.07

Size

Metric KOS KRP Oil & Gas E&P median
Market cap 1.66b 1.90b 923.59m

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