Range Resources Corporation (RRC) vs Texas Pacific Land Corporation (TPL)

Range Resources Corporation and Texas Pacific Land Corporation are both Oil & Gas E&P companies. Texas Pacific Land Corporation is the larger, with a market value of $18.8B against $11.7B — 1.6× the size. Range Resources Corporation trades at the lower P/E: 13.3× against 32.3×. Texas Pacific Land Corporation grew revenue faster over the last twelve months: 25.3% against 20.8%. Texas Pacific Land Corporation has the higher net margin (60.7% vs 25.2%) and the higher return on invested capital (31.9% vs 13.9%). Both pay a dividend; Texas Pacific Land Corporation yields more (0.85% vs 0.78%). Across the 23 metrics below, Texas Pacific Land Corporation leads on 13 and Range Resources Corporation on 10.

Valuation

Metric RRC TPL Oil & Gas E&P median
P/E 13.26 32.34 9.67
P/S 3.32 19.63 1.76
P/B 2.41 10.54 1.19
Price to free cash flow 16.14 44.94 8.37
EV/EBITDA 8.01 23.09 4.59
EV/Sales 3.72 19.25 2.27
Earnings yield 7.54% 3.09% 7.55%
Free cash flow yield 6.20% 2.23% 3.98%

Profitability

Metric RRC TPL Oil & Gas E&P median
Gross margin 93.33% 100.00% 79.54%
Operating margin 35.54% 75.55% 24.01%
Net margin 25.21% 60.71% 14.11%
Free cash flow margin 20.59% 66.22% 7.72%
Return on equity 19.61% 37.07% 8.99%
Return on assets 11.99% 33.45% 4.63%
Return on invested capital 13.87% 31.90% 6.33%

Growth

Metric RRC TPL Oil & Gas E&P median
Revenue growth (TTM) 20.84% 25.30% 13.60%
EPS growth (last fiscal year) 151.38% 6.04% (10.17%)
Revenue growth, 5-year CAGR 9.62% 21.41% 18.67%
Net income growth, 5-year CAGR 0.00% 22.28% 0.00%

Health

Metric RRC TPL Oil & Gas E&P median
Debt to equity 0.16 0.00 0.29
Current ratio 0.74 0.00 0.92
Net debt to EBITDA 0.89 (0.22) 0.93

Dividend

Metric RRC TPL Oil & Gas E&P median
Dividend yield 0.78% 0.85% 3.76%
Payout ratio 0.10 0.27 0.33

Size

Metric RRC TPL Oil & Gas E&P median
Market cap 11.73b 18.77b 953.29m

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