PrimeEnergy Corporation (PNRG) vs W&T Offshore, Inc. (WTI)

PrimeEnergy Corporation and W&T Offshore, Inc. are both Oil & Gas E&P companies. W&T Offshore, Inc. is the larger, with a market value of $552.5M against $322.7M — 1.7× the size. W&T Offshore, Inc. has negative trailing earnings, so its P/E is not meaningful; PrimeEnergy Corporation trades at 13.6×. W&T Offshore, Inc. grew revenue faster over the last twelve months: 13.8% against −19.4%. PrimeEnergy Corporation has the higher net margin (13.9% vs −19.3%) and the lower return on invested capital (9.18% vs 74.1%). Across the 19 metrics below, PrimeEnergy Corporation leads on 13 and W&T Offshore, Inc. on 6.

Valuation

Metric PNRG WTI Oil & Gas E&P median
P/E 13.55 n/m 11.01
P/S 1.86 1.02 1.98
P/B 1.52 n/m 1.30
Price to free cash flow 6.65 15.16 10.68
EV/EBITDA 3.29 5.09 5.09
EV/Sales 1.78 1.38 2.63
Earnings yield 7.38% (19.06%) 5.78%
Free cash flow yield 15.04% 6.60% 4.91%

Profitability

Metric PNRG WTI Oil & Gas E&P median
Gross margin 68.29% 43.34% 80.41%
Operating margin 15.75% 0.99% 21.39%
Net margin 13.87% (19.32%) 14.17%
Free cash flow margin 27.95% 6.73% 8.18%
Return on equity 11.72% 72.64% 10.05%
Return on assets 7.54% (10.95%) 5.81%
Return on invested capital 9.18% 74.05% 6.32%

Growth

Metric PNRG WTI Oil & Gas E&P median
Revenue growth (TTM) (19.43%) 13.75% 9.94%
EPS growth (last fiscal year) (50.52%) (71.19%) (10.50%)
Revenue growth, 5-year CAGR 26.47% 7.66% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PNRG WTI Oil & Gas E&P median
Debt to equity 0.01 (1.79) 0.28
Current ratio 1.49 1.17 0.96
Net debt to EBITDA (0.07) 2.09 0.89

Dividend

Metric PNRG WTI Oil & Gas E&P median
Dividend yield — 1.04% 3.29%
Payout ratio — — 0.35

Size

Metric PNRG WTI Oil & Gas E&P median
Market cap 322.71m 552.45m 1.04b

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