Kimbell Royalty (KRP) vs Mach Natural Resources LP (MNR)

Kimbell Royalty and Mach Natural Resources LP are both Oil & Gas E&P companies. Kimbell Royalty is the larger, with a market value of $1.9B against $1.7B — 1.2× the size. Mach Natural Resources LP trades at the lower P/E: 11.4× against 19.6×. Mach Natural Resources LP grew revenue faster over the last twelve months: 36.8% against 9.03%. Kimbell Royalty has the higher net margin (21.3% vs 10.5%) and the higher return on invested capital (6.79% vs 5.30%). Across the 20 metrics below, Mach Natural Resources LP leads on 11 and Kimbell Royalty on 9.

Valuation

Metric KRP MNR Oil & Gas E&P median
P/E 19.61 11.42 9.67
P/S 4.34 1.19 1.76
P/B 1.93 0.90 1.19
Price to free cash flow 12.67 5.97 8.37
EV/EBITDA 7.67 4.44 4.59
EV/Sales 5.79 2.06 2.27
Earnings yield 5.10% 8.75% 7.55%
Free cash flow yield 7.89% 16.74% 3.98%

Profitability

Metric KRP MNR Oil & Gas E&P median
Gross margin 100.00% 0.00% 79.54%
Operating margin 40.20% 17.91% 24.01%
Net margin 21.31% 10.47% 14.11%
Free cash flow margin 34.30% 42.01% 7.72%
Return on equity 10.51% 0.00% 8.99%
Return on assets 5.35% 3.91% 4.63%
Return on invested capital 6.79% 5.30% 6.33%

Growth

Metric KRP MNR Oil & Gas E&P median
Revenue growth (TTM) 9.03% 36.75% 13.60%
EPS growth (last fiscal year) 616.67% (42.63%) (10.17%)
Revenue growth, 5-year CAGR 29.84% — 18.67%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric KRP MNR Oil & Gas E&P median
Debt to equity 0.69 0.63 0.29
Current ratio 3.79 0.79 0.92
Net debt to EBITDA 1.53 2.03 0.93

Dividend

Metric KRP MNR Oil & Gas E&P median
Dividend yield 10.60% — 3.76%
Payout ratio 2.08 — 0.33

Size

Metric KRP MNR Oil & Gas E&P median
Market cap 1.93b 1.66b 953.29m

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