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 $467.9M against $291.8M — 1.6× the size. Ring Energy, Inc. has negative trailing earnings, so its P/E is not meaningful; SandRidge Energy, Inc. trades at 4.8×. SandRidge Energy, Inc. grew revenue faster over the last twelve months: 24.9% against 7.37%. SandRidge Energy, Inc. has the higher net margin (50.1% vs −53.3%) and the higher return on invested capital (9.35% vs −4.09%). 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 4.78 9.67
P/S 0.85 2.41 1.76
P/B 0.40 0.82 1.19
Price to free cash flow 5.89 n/m 8.37
EV/EBITDA 37.89 3.46 4.59
EV/Sales 1.85 2.22 2.27
Earnings yield (79.65%) 20.90% 7.55%
Free cash flow yield 16.98% (1.79%) 3.98%

Profitability

Metric REI SD Oil & Gas E&P median
Gross margin 0.00% 73.34% 79.54%
Operating margin (20.48%) 38.38% 24.01%
Net margin (53.30%) 50.14% 14.11%
Free cash flow margin 50.18% (4.31%) 7.72%
Return on equity (23.35%) 18.38% 8.99%
Return on assets (13.46%) 14.66% 4.63%
Return on invested capital (4.09%) 9.35% 6.33%

Growth

Metric REI SD Oil & Gas E&P median
Revenue growth (TTM) 7.37% 24.87% 13.60%
EPS growth (last fiscal year) (150.00%) 12.43% (10.17%)
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 0.47 0.00 0.29
Current ratio 0.41 1.52 0.92
Net debt to EBITDA 6.31 (1.08) 0.93

Dividend

Metric REI SD Oil & Gas E&P median
Dividend yield — 3.94% 3.76%
Payout ratio — 0.19 0.33

Size

Metric REI SD Oil & Gas E&P median
Market cap 291.81m 467.89m 953.29m

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