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 ($2.1B and $1.9B). Vermilion Energy Inc. has negative trailing earnings, so its P/E is not meaningful; Kimbell Royalty trades at 19.4×. 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 (9.83% 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 19.38 n/m 11.01
P/S 4.60 1.55 1.98
P/B 2.34 1.29 1.30
Price to free cash flow 8.12 3.43 10.68
EV/EBITDA 7.64 4.16 5.09
EV/Sales 5.87 2.40 2.63
Earnings yield 5.16% (15.83%) 5.78%
Free cash flow yield 12.32% 29.15% 4.91%

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% 8.18%
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%) (10.50%)
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 0.89

Dividend

Metric KRP VET Oil & Gas E&P median
Dividend yield 9.83% 2.93% 3.29%
Payout ratio 1.90 — 0.35

Size

Metric KRP VET Oil & Gas E&P median
Market cap 2.05b 1.93b 1.04b

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