Kimbell Royalty (KRP) vs Northern Oil and Gas, Inc. (NOG)

Kimbell Royalty and Northern Oil and Gas, Inc. are both Oil & Gas E&P companies. Northern Oil and Gas, Inc. is the larger, with a market value of $2.4B against $1.9B — 1.2× the size. Northern Oil and Gas, Inc. has negative trailing earnings, so its P/E is not meaningful; Kimbell Royalty trades at 19.6×. Kimbell Royalty grew revenue faster over the last twelve months: 9.03% against −25.6%. Kimbell Royalty has the higher net margin (21.3% vs −25.4%) and the higher return on invested capital (6.79% vs −6.22%). Both pay a dividend; Kimbell Royalty yields more (10.6% vs 8.04%). Across the 20 metrics below, Kimbell Royalty leads on 16 and Northern Oil and Gas, Inc. on 4.

Valuation

Metric KRP NOG Oil & Gas E&P median
P/E 19.61 n/m 9.67
P/S 4.34 1.24 1.76
P/B 1.93 1.19 1.19
Price to free cash flow 12.67 n/m 8.37
EV/EBITDA 7.67 14.96 4.59
EV/Sales 5.79 2.65 2.27
Earnings yield 5.10% (22.92%) 7.55%
Free cash flow yield 7.89% (12.41%) 3.98%

Profitability

Metric KRP NOG Oil & Gas E&P median
Gross margin 100.00% 66.68% 79.54%
Operating margin 40.20% (24.10%) 24.01%
Net margin 21.31% (25.35%) 14.11%
Free cash flow margin 34.30% (15.34%) 7.72%
Return on equity 10.51% (22.05%) 8.99%
Return on assets 5.35% (8.43%) 4.63%
Return on invested capital 6.79% (6.22%) 6.33%

Growth

Metric KRP NOG Oil & Gas E&P median
Revenue growth (TTM) 9.03% (25.62%) 13.60%
EPS growth (last fiscal year) 616.67% (92.41%) (10.17%)
Revenue growth, 5-year CAGR 29.84% 35.00% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric KRP NOG Oil & Gas E&P median
Debt to equity 0.69 1.37 0.29
Current ratio 3.79 0.80 0.92
Net debt to EBITDA 1.53 2.07 0.93

Dividend

Metric KRP NOG Oil & Gas E&P median
Dividend yield 10.60% 8.04% 3.76%
Payout ratio 2.08 — 0.33

Size

Metric KRP NOG Oil & Gas E&P median
Market cap 1.93b 2.36b 953.29m

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