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 $525.4M against $351.7M — 1.5× the size. Ring Energy, Inc. has negative trailing earnings, so its P/E is not meaningful; SandRidge Energy, Inc. trades at 6.2×. 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 6.15 10.57
P/S 0.98 2.85 1.80
P/B 0.42 0.95 1.27
Price to free cash flow 10.12 14.85 9.99
EV/EBITDA n/m 3.57 5.08
EV/Sales 2.09 2.39 2.39
Earnings yield (80.15%) 16.26% 6.06%
Free cash flow yield 9.88% 6.73% 6.17%

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% 9.71%
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% —
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) 0.91

Dividend

Metric REI SD Oil & Gas E&P median
Dividend yield — 1.61% 4.93%
Payout ratio 0.00 0.00 0.07

Size

Metric REI SD Oil & Gas E&P median
Market cap 351.73m 525.36m 923.59m

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