Mesa Royalty Trust (MTR) vs Prairie Operating Co. (PROP)

Mesa Royalty Trust and Prairie Operating Co. are both Oil & Gas E&P companies. Prairie Operating Co. is the larger, with a market value of $47.1M against $4.4M — 10.6× the size. Prairie Operating Co. has negative trailing earnings, so its P/E is not meaningful; Mesa Royalty Trust trades at 12.4×. Prairie Operating Co. grew revenue faster over the last twelve months: 311.2% against −3.01%. Mesa Royalty Trust has the higher net margin (76.6% vs 1.01%) and the higher return on invested capital (20.9% vs 10.3%). Across the 19 metrics below, Mesa Royalty Trust leads on 11 and Prairie Operating Co. on 8.

Valuation

Metric MTR PROP Oil & Gas E&P median
P/E 12.36 n/m 10.57
P/S 9.50 0.13 1.80
P/B 1.44 0.21 1.27
Price to free cash flow n/m n/m 9.99
EV/EBITDA 5.61 2.60 5.08
EV/Sales 5.17 1.41 2.39
Earnings yield 8.09% (293.60%) 6.06%
Free cash flow yield 0.00% (86.39%) 6.17%

Profitability

Metric MTR PROP Oil & Gas E&P median
Gross margin 100.00% 100.00% 80.41%
Operating margin 92.05% 33.92% 21.39%
Net margin 76.63% 1.01% 14.17%
Free cash flow margin 0.00% (11.63%) 9.71%
Return on equity 11.61% 2.18% 10.05%
Return on assets 11.09% 0.37% 5.81%
Return on invested capital 20.94% 10.31% 6.32%

Growth

Metric MTR PROP Oil & Gas E&P median
Revenue growth (TTM) (3.01%) 311.16% 9.94%
EPS growth (last fiscal year) (8.00%) 49.06% —
Revenue growth, 5-year CAGR (6.29%) 257.76% 18.67%
Net income growth, 5-year CAGR (2.02%) 0.00% 0.00%

Health

Metric MTR PROP Oil & Gas E&P median
Debt to equity 0.00 1.64 0.28
Current ratio 17.12 0.25 0.96
Net debt to EBITDA (3.50) 3.13 0.91

Dividend

Metric MTR PROP Oil & Gas E&P median
Dividend yield 13.28% — 4.93%
Payout ratio 0.97 — 0.07

Size

Metric MTR PROP Oil & Gas E&P median
Market cap 4.44m 47.09m 923.59m

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