Kimbell Royalty (KRP) vs Vermilion Energy Inc. (VET)

Kimbell Royalty and Vermilion Energy Inc. are both Oil & Gas E&P companies. Kimbell Royalty and Vermilion Energy Inc. are of similar size ($1.9B and $1.8B). Vermilion Energy Inc. has negative trailing earnings, so its P/E is not meaningful; Kimbell Royalty trades at 17.3×. Kimbell Royalty grew revenue faster over the last twelve months: 6.17% against −5.20%. Kimbell Royalty has the higher net margin (23.0% vs −24.5%) and the higher return on invested capital (7.76% vs 5.93%). Both pay a dividend; Kimbell Royalty yields more (11.3% vs 2.93%). Across the 21 metrics below, Kimbell Royalty leads on 13 and Vermilion Energy Inc. on 8.

Valuation

Metric KRP VET Oil & Gas E&P median
P/E 17.35 n/m 10.57
P/S 4.11 1.37 1.80
P/B 2.10 1.14 1.27
Price to free cash flow 7.26 3.01 9.99
EV/EBITDA 7.01 3.62 5.08
EV/Sales 5.39 2.09 2.39
Earnings yield 5.77% (18.02%) 6.06%
Free cash flow yield 13.77% 33.17% 6.17%

Profitability

Metric KRP VET Oil & Gas E&P median
Gross margin 100.00% 62.13% 80.41%
Operating margin 40.15% 18.12% 21.39%
Net margin 23.03% (24.50%) 14.17%
Free cash flow margin 56.63% 45.31% 9.71%
Return on equity 11.97% (18.15%) 10.05%
Return on assets 6.02% (7.23%) 5.81%
Return on invested capital 7.76% 5.93% 6.32%

Growth

Metric KRP VET Oil & Gas E&P median
Revenue growth (TTM) 6.17% (5.20%) 9.94%
EPS growth (last fiscal year) 616.67% (1,281.82%) —
Revenue growth, 5-year CAGR 29.84% 8.21% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric KRP VET Oil & Gas E&P median
Debt to equity 0.72 0.63 0.28
Current ratio 7.30 1.00 0.96
Net debt to EBITDA 1.53 1.30 0.91

Dividend

Metric KRP VET Oil & Gas E&P median
Dividend yield 11.33% 2.93% 4.93%
Payout ratio 1.03 0.05 0.07

Size

Metric KRP VET Oil & Gas E&P median
Market cap 1.90b 1.82b 923.59m

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