Mesa Royalty Trust (MTR) vs Trio Petroleum Corp. (TPET)

Mesa Royalty Trust and Trio Petroleum Corp. are both Oil & Gas E&P companies. Trio Petroleum Corp. is the larger, with a market value of $8.0M against $3.7M — 2.2× the size. Trio Petroleum Corp. has negative trailing earnings, so its P/E is not meaningful; Mesa Royalty Trust trades at 9.8×. Trio Petroleum Corp. grew revenue faster over the last twelve months: 180.3% against −3.01%. Mesa Royalty Trust has the higher net margin (76.6% vs −830.2%) and the higher return on invested capital (20.9% vs −35.0%). Across the 18 metrics below, Mesa Royalty Trust leads on 11 and Trio Petroleum Corp. on 7.

Valuation

Metric MTR TPET Oil & Gas E&P median
P/E 9.82 n/m 9.65
P/S 7.55 9.20 1.73
P/B 1.14 0.21 1.23
Price to free cash flow n/m n/m 9.34
EV/EBITDA 3.49 2.52 4.58
EV/Sales 3.21 (19.34) 2.27
Earnings yield 10.19% (208.08%) 7.67%
Free cash flow yield 0.00% (57.82%) 4.40%

Profitability

Metric MTR TPET Oil & Gas E&P median
Gross margin 100.00% 18.82% 80.16%
Operating margin 92.05% (802.46%) 24.33%
Net margin 76.63% (830.20%) 14.15%
Free cash flow margin 0.00% (531.73%) 10.07%
Return on equity 11.61% (29.50%) 9.41%
Return on assets 11.09% (27.75%) 5.35%
Return on invested capital 20.94% (35.01%) 6.33%

Growth

Metric MTR TPET Oil & Gas E&P median
Revenue growth (TTM) (3.01%) 180.31% 13.60%
EPS growth (last fiscal year) (8.00%) 81.48% (10.17%)
Revenue growth, 5-year CAGR (6.29%) — 18.67%
Net income growth, 5-year CAGR (2.02%) 0.00% 0.00%

Health

Metric MTR TPET Oil & Gas E&P median
Debt to equity 0.00 0.00 0.29
Current ratio 17.12 20.55 0.90
Net debt to EBITDA (3.50) 0.19 0.93

Dividend

Metric MTR TPET Oil & Gas E&P median
Dividend yield 6.23% — 3.80%
Payout ratio 0.61 — 0.33

Size

Metric MTR TPET Oil & Gas E&P median
Market cap 3.68m 7.99m 895.85m

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