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 ($291.8M and $286.2M). Ring Energy, Inc. has negative trailing earnings, so its P/E is not meaningful; PrimeEnergy Corporation trades at 12.1×. Ring Energy, Inc. grew revenue faster over the last twelve months: 7.37% against −19.4%. PrimeEnergy Corporation has the higher net margin (13.9% vs −53.3%) and the higher return on invested capital (9.18% vs −4.09%). Across the 20 metrics below, PrimeEnergy Corporation leads on 14 and Ring Energy, Inc. on 6.

Valuation

Metric PNRG REI Oil & Gas E&P median
P/E 12.14 n/m 9.67
P/S 1.66 0.85 1.76
P/B 1.36 0.40 1.19
Price to free cash flow 5.96 5.89 8.37
EV/EBITDA 2.93 37.89 4.59
EV/Sales 1.58 1.85 2.27
Earnings yield 8.23% (79.65%) 7.55%
Free cash flow yield 16.79% 16.98% 3.98%

Profitability

Metric PNRG REI Oil & Gas E&P median
Gross margin 68.29% 0.00% 79.54%
Operating margin 15.75% (20.48%) 24.01%
Net margin 13.87% (53.30%) 14.11%
Free cash flow margin 27.95% 50.18% 7.72%
Return on equity 11.72% (23.35%) 8.99%
Return on assets 7.54% (13.46%) 4.63%
Return on invested capital 9.18% (4.09%) 6.33%

Growth

Metric PNRG REI Oil & Gas E&P median
Revenue growth (TTM) (19.43%) 7.37% 13.60%
EPS growth (last fiscal year) (50.52%) (150.00%) (10.17%)
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 0.47 0.29
Current ratio 1.49 0.41 0.92
Net debt to EBITDA (0.07) 6.31 0.93

Dividend

Metric PNRG REI Oil & Gas E&P median
Dividend yield — — 3.76%
Payout ratio — — 0.33

Size

Metric PNRG REI Oil & Gas E&P median
Market cap 286.20m 291.81m 953.29m

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