Viper Energy Inc. (VNOM) vs Western Midstream Partners, LP (WES)

Viper Energy Inc. and Western Midstream Partners, LP are both Oil & Gas Midstream companies. Western Midstream Partners, LP is the larger, with a market value of $18.7B against $15.0B — 1.3× the size. Western Midstream Partners, LP trades at the lower P/E: 14.3× against 292×. Viper Energy Inc. grew revenue faster over the last twelve months: 107.8% against 18.0%. Western Midstream Partners, LP has the higher net margin (29.0% vs 2.89%) and the higher return on invested capital (8.16% vs 1.32%). Both pay a dividend; Western Midstream Partners, LP yields more (8.96% vs 6.49%). Across the 23 metrics below, Viper Energy Inc. leads on 12 and Western Midstream Partners, LP on 11.

Valuation

Metric VNOM WES Oil & Gas Midstream median
P/E 292.36 14.29 13.19
P/S 3.89 4.19 2.60
P/B 0.77 4.12 2.08
Price to free cash flow 10.38 15.35 10.14
EV/EBITDA 9.28 10.75 8.11
EV/Sales 4.86 6.26 3.89
Earnings yield 0.34% 7.00% 6.83%
Free cash flow yield 9.63% 6.51% 6.94%

Profitability

Metric VNOM WES Oil & Gas Midstream median
Gross margin 100.00% 92.08% 58.81%
Operating margin 12.30% 40.23% 32.14%
Net margin 2.89% 29.00% 21.16%
Free cash flow margin 37.43% 27.30% 10.15%
Return on equity 0.62% 32.48% 11.30%
Return on assets 0.54% 8.82% 5.00%
Return on invested capital 1.32% 8.16% 6.13%

Growth

Metric VNOM WES Oil & Gas Midstream median
Revenue growth (TTM) 107.84% 18.00% 15.44%
EPS growth (last fiscal year) (112.57%) (25.87%) —
Revenue growth, 5-year CAGR 40.96% 6.75% 8.96%
Net income growth, 5-year CAGR 0.00% 17.48% 0.00%

Health

Metric VNOM WES Oil & Gas Midstream median
Debt to equity 0.16 2.06 0.78
Current ratio 6.37 0.91 1.19
Net debt to EBITDA 4.65 3.37 3.42

Dividend

Metric VNOM WES Oil & Gas Midstream median
Dividend yield 6.49% 8.96% 7.29%
Payout ratio — — 0.64

Size

Metric VNOM WES Oil & Gas Midstream median
Market cap 14.96b 18.74b 3.61b

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