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

Kimbell Royalty and Vermilion Energy Inc. are both Oil & Gas E&P companies. Kimbell Royalty is the larger, with a market value of $1.9B against $1.6B — 1.2× the size. Vermilion Energy 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 −5.20%. Kimbell Royalty has the higher net margin (21.3% vs −24.5%) and the higher return on invested capital (6.79% vs 5.93%). Both pay a dividend; Kimbell Royalty yields more (10.6% vs 3.66%). Across the 21 metrics below, Kimbell Royalty leads on 12 and Vermilion Energy Inc. on 9.

Valuation

Metric KRP VET 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 1.04 1.19
Price to free cash flow 12.67 2.74 8.37
EV/EBITDA 7.67 3.62 4.59
EV/Sales 5.79 2.09 2.27
Earnings yield 5.10% (19.79%) 7.55%
Free cash flow yield 7.89% 36.44% 3.98%

Profitability

Metric KRP VET Oil & Gas E&P median
Gross margin 100.00% 62.13% 79.54%
Operating margin 40.20% 18.12% 24.01%
Net margin 21.31% (24.50%) 14.11%
Free cash flow margin 34.30% 45.31% 7.72%
Return on equity 10.51% (18.15%) 8.99%
Return on assets 5.35% (7.23%) 4.63%
Return on invested capital 6.79% 5.93% 6.33%

Growth

Metric KRP VET Oil & Gas E&P median
Revenue growth (TTM) 9.03% (5.20%) 13.60%
EPS growth (last fiscal year) 616.67% (1,281.82%) (10.17%)
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 0.69 0.63 0.29
Current ratio 3.79 1.00 0.92
Net debt to EBITDA 1.53 1.30 0.93

Dividend

Metric KRP VET Oil & Gas E&P median
Dividend yield 10.60% 3.66% 3.76%
Payout ratio 2.08 — 0.33

Size

Metric KRP VET Oil & Gas E&P median
Market cap 1.93b 1.61b 953.29m

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