Ring Energy, Inc. (REI) vs SandRidge Energy, Inc. (SD)

Ring Energy, Inc. and SandRidge Energy, Inc. are both Oil & Gas E&P companies. SandRidge Energy, Inc. is the larger, with a market value of $515.7M against $341.3M — 1.5× the size. Ring Energy, Inc. has negative trailing earnings, so its P/E is not meaningful; SandRidge Energy, Inc. trades at 6.3×. SandRidge Energy, Inc. grew revenue faster over the last twelve months: 23.2% against −3.15%. SandRidge Energy, Inc. has the higher net margin (46.1% vs −68.0%) and the higher return on invested capital (10.8% vs −9.64%). Across the 19 metrics below, SandRidge Energy, Inc. leads on 13 and Ring Energy, Inc. on 6.

Valuation

Metric REI SD Oil & Gas E&P median
P/E n/m 6.31 11.01
P/S 0.99 2.92 1.98
P/B 0.43 0.97 1.30
Price to free cash flow 10.19 15.25 10.68
EV/EBITDA n/m 3.68 5.09
EV/Sales 2.10 2.46 2.63
Earnings yield (79.56%) 15.84% 5.78%
Free cash flow yield 9.81% 6.56% 4.91%

Profitability

Metric REI SD Oil & Gas E&P median
Gross margin 71.76% 71.89% 80.41%
Operating margin (53.03%) 41.11% 21.39%
Net margin (68.02%) 46.06% 14.17%
Free cash flow margin 9.71% 19.18% 8.18%
Return on equity (26.68%) 16.22% 10.05%
Return on assets (15.75%) 13.06% 5.81%
Return on invested capital (9.64%) 10.81% 6.32%

Growth

Metric REI SD Oil & Gas E&P median
Revenue growth (TTM) (3.15%) 23.23% 9.94%
EPS growth (last fiscal year) (150.00%) 12.43% (10.50%)
Revenue growth, 5-year CAGR 22.14% 6.34% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric REI SD Oil & Gas E&P median
Debt to equity 0.48 0.00 0.28
Current ratio 0.54 2.62 0.96
Net debt to EBITDA 6.31 (1.08) 0.89

Dividend

Metric REI SD Oil & Gas E&P median
Dividend yield — 3.50% 3.29%
Payout ratio — 0.22 0.35

Size

Metric REI SD Oil & Gas E&P median
Market cap 341.30m 515.72m 1.04b

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