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 $960.2M against $544.1M — 1.8× the size. Summit Midstream Partners, LP has negative trailing earnings, so its P/E is not meaningful; Sabine Royalty Trust trades at 13.6×. 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 13.58 n/m 11.68
P/S 12.86 0.63 2.39
P/B n/m 0.43 1.68
Price to free cash flow n/m 8.26 8.52
EV/EBITDA 13.45 7.74 9.03
EV/Sales 12.74 2.71 3.43
Earnings yield 7.37% (4.10%) 7.78%
Free cash flow yield 0.00% 12.11% 7.11%

Profitability

Metric SBR SMC Oil & Gas Midstream median
Gross margin 100.00% 45.03% 54.87%
Operating margin 94.71% 15.10% 34.73%
Net margin 94.71% (2.29%) 20.12%
Free cash flow margin 0.00% 7.69% 14.43%
Return on equity 0.00% (1.57%) 11.73%
Return on assets 806.27% (0.55%) 4.43%
Return on invested capital 0.00% 2.59% 6.10%

Growth

Metric SBR SMC Oil & Gas Midstream median
Revenue growth (TTM) (2.95%) 20.94% 14.88%
EPS growth (last fiscal year) (7.69%) 87.40% (7.78%)
Revenue growth, 5-year CAGR 16.35% 7.95% 10.05%
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 0.77
Current ratio 7.25 0.94 1.19
Net debt to EBITDA (0.10) 5.27 3.46

Dividend

Metric SBR SMC Oil & Gas Midstream median
Dividend yield 6.77% — 4.94%
Payout ratio 0.92 — 0.73

Size

Metric SBR SMC Oil & Gas Midstream median
Market cap 960.20m 544.05m 3.56b

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