Sabine Royalty Trust (SBR) vs Summit Midstream Partners, LP (SMC)

Sabine Royalty Trust and Summit Midstream Partners, LP are both Oil & Gas Midstream companies. Sabine Royalty Trust is the larger, with a market value of $1.1B against $608.8M — 1.7× the size. Summit Midstream Partners, LP has negative trailing earnings, so its P/E is not meaningful; Sabine Royalty Trust trades at 14.8×. Summit Midstream Partners, LP grew revenue faster over the last twelve months: 20.9% against −2.95%. Sabine Royalty Trust has the higher net margin (94.7% vs −2.29%) and the lower return on invested capital (0.00% vs 2.59%). Across the 19 metrics below, Sabine Royalty Trust leads on 11 and Summit Midstream Partners, LP on 8.

Valuation

Metric SBR SMC Oil & Gas Midstream median
P/E 14.79 n/m 12.77
P/S 14.02 0.73 2.36
P/B n/m 0.50 2.09
Price to free cash flow n/m 9.46 9.71
EV/EBITDA 14.66 8.00 8.30
EV/Sales 13.89 2.80 3.88
Earnings yield 6.76% (3.58%) 7.15%
Free cash flow yield 0.00% 10.58% 6.86%

Profitability

Metric SBR SMC Oil & Gas Midstream median
Gross margin 100.00% 45.03% 56.58%
Operating margin 94.71% 15.10% 34.18%
Net margin 94.71% (2.29%) 22.50%
Free cash flow margin 0.00% 7.69% 13.70%
Return on equity 0.00% (1.57%) 14.65%
Return on assets 806.27% (0.55%) 5.00%
Return on invested capital 0.00% 2.59% 6.13%

Growth

Metric SBR SMC Oil & Gas Midstream median
Revenue growth (TTM) (2.95%) 20.94% 15.60%
EPS growth (last fiscal year) (7.69%) 87.40% (7.86%)
Revenue growth, 5-year CAGR 16.35% 7.95% 9.59%
Net income growth, 5-year CAGR 17.13% 0.00% 0.00%

Health

Metric SBR SMC Oil & Gas Midstream median
Debt to equity 0.00 1.35 0.78
Current ratio 7.25 0.94 1.19
Net debt to EBITDA (0.10) 5.27 3.42

Dividend

Metric SBR SMC Oil & Gas Midstream median
Dividend yield 6.22% — 4.54%
Payout ratio 0.92 — 0.76

Size

Metric SBR SMC Oil & Gas Midstream median
Market cap 1.05b 608.84m 3.73b

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