PrimeEnergy Corporation (PNRG) vs Ring Energy, Inc. (REI)

PrimeEnergy Corporation and Ring Energy, Inc. are both Oil & Gas E&P companies. PrimeEnergy Corporation and Ring Energy, Inc. are of similar size ($351.7M and $333.7M). Ring Energy, Inc. has negative trailing earnings, so its P/E is not meaningful; PrimeEnergy Corporation trades at 13.7×. Ring Energy, Inc. grew revenue faster over the last twelve months: −3.15% against −19.4%. PrimeEnergy Corporation has the higher net margin (13.9% vs −68.0%) and the higher return on invested capital (9.18% vs −9.64%). Across the 19 metrics below, PrimeEnergy Corporation leads on 15 and Ring Energy, Inc. on 4.

Valuation

Metric PNRG REI Oil & Gas E&P median
P/E 13.69 n/m 10.57
P/S 1.88 0.98 1.80
P/B 1.54 0.42 1.27
Price to free cash flow 6.71 10.12 9.99
EV/EBITDA 3.32 n/m 5.08
EV/Sales 1.80 2.09 2.39
Earnings yield 7.30% (80.15%) 6.06%
Free cash flow yield 14.89% 9.88% 6.17%

Profitability

Metric PNRG REI Oil & Gas E&P median
Gross margin 68.29% 71.76% 80.41%
Operating margin 15.75% (53.03%) 21.39%
Net margin 13.87% (68.02%) 14.17%
Free cash flow margin 27.95% 9.71% 9.71%
Return on equity 11.72% (26.68%) 10.05%
Return on assets 7.54% (15.75%) 5.81%
Return on invested capital 9.18% (9.64%) 6.32%

Growth

Metric PNRG REI Oil & Gas E&P median
Revenue growth (TTM) (19.43%) (3.15%) 9.94%
EPS growth (last fiscal year) (50.52%) (150.00%) —
Revenue growth, 5-year CAGR 26.47% 22.14% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PNRG REI Oil & Gas E&P median
Debt to equity 0.01 0.48 0.28
Current ratio 1.49 0.54 0.96
Net debt to EBITDA (0.07) 6.31 0.91

Dividend

Metric PNRG REI Oil & Gas E&P median
Dividend yield — — 4.93%
Payout ratio 0.00 0.00 0.07

Size

Metric PNRG REI Oil & Gas E&P median
Market cap 333.69m 351.73m 923.59m

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