OPAL Fuels Inc. (OPAL) vs Suburban Propane Partners, L.P. (SPH)

OPAL Fuels Inc. and Suburban Propane Partners, L.P. are both Utilities Regulated Gas companies. Suburban Propane Partners, L.P. is the larger, with a market value of $1.1B against $321.4M — 3.4× the size. OPAL Fuels Inc. has negative trailing earnings, so its P/E is not meaningful; Suburban Propane Partners, L.P. trades at 8.4×. OPAL Fuels Inc. grew revenue faster over the last twelve months: 3.02% against −2.48%. Suburban Propane Partners, L.P. has the higher net margin (9.37% vs −0.13%) and the higher return on invested capital (6.83% vs 0.39%). Across the 18 metrics below, Suburban Propane Partners, L.P. leads on 12 and OPAL Fuels Inc. on 6.

Valuation

Metric OPAL SPH Utilities Regulated Gas median
P/E n/m 8.43 15.65
P/S 0.16 0.79 2.04
P/B 1.45 1.55 1.50
Price to free cash flow n/m 10.58 —
EV/EBITDA 14.56 8.32 11.49
EV/Sales 1.16 1.67 3.54
Earnings yield (0.54%) 11.87% 6.39%
Free cash flow yield (87.42%) 9.46% (5.71%)

Profitability

Metric OPAL SPH Utilities Regulated Gas median
Gross margin 29.42% 63.14% 63.14%
Operating margin 0.69% 15.13% 21.47%
Net margin (0.13%) 9.37% 13.00%
Free cash flow margin (14.10%) 7.51% (13.27%)
Return on equity (5.45%) 19.23% 9.47%
Return on assets (0.04%) 5.59% 3.80%
Return on invested capital 0.39% 6.83% 4.29%

Growth

Metric OPAL SPH Utilities Regulated Gas median
Revenue growth (TTM) 3.02% (2.48%) 6.36%
EPS growth (last fiscal year) 650.00% 42.11% —
Revenue growth, 5-year CAGR — 5.27% 6.36%
Net income growth, 5-year CAGR — 11.89% 8.10%

Health

Metric OPAL SPH Utilities Regulated Gas median
Debt to equity 11.39 1.72 1.22
Current ratio 1.82 0.78 0.78
Net debt to EBITDA 10.02 4.35 4.68

Dividend

Metric OPAL SPH Utilities Regulated Gas median
Dividend yield — 6.55% 4.31%
Payout ratio 0.00 — 0.62

Size

Metric OPAL SPH Utilities Regulated Gas median
Market cap 321.43m 1.10b 4.52b

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