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 ($341.3M and $322.7M). Ring Energy, Inc. has negative trailing earnings, so its P/E is not meaningful; PrimeEnergy Corporation trades at 13.6×. 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 13.55 n/m 11.01
P/S 1.86 0.99 1.98
P/B 1.52 0.43 1.30
Price to free cash flow 6.65 10.19 10.68
EV/EBITDA 3.29 n/m 5.09
EV/Sales 1.78 2.10 2.63
Earnings yield 7.38% (79.56%) 5.78%
Free cash flow yield 15.04% 9.81% 4.91%

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% 8.18%
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%) (10.50%)
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 0.89

Dividend

Metric PNRG REI Oil & Gas E&P median
Dividend yield — — 3.29%
Payout ratio — — 0.35

Size

Metric PNRG REI Oil & Gas E&P median
Market cap 322.71m 341.30m 1.04b

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