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 $18.2B against $15.7B — 1.2× the size. Western Midstream Partners, LP trades at the lower P/E: 14.0× against 322×. 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 (8.25% vs 5.44%). Across the 23 metrics below, Western Midstream Partners, LP leads on 12 and Viper Energy Inc. on 11.

Valuation

Metric VNOM WES Oil & Gas Midstream median
P/E 321.64 13.98 12.77
P/S 4.27 4.10 2.36
P/B 0.85 4.03 2.09
Price to free cash flow 11.42 15.01 9.71
EV/EBITDA 10.02 10.59 8.30
EV/Sales 5.24 6.16 3.88
Earnings yield 0.31% 7.15% 7.15%
Free cash flow yield 8.76% 6.66% 6.86%

Profitability

Metric VNOM WES Oil & Gas Midstream median
Gross margin 100.00% 92.08% 56.58%
Operating margin 12.30% 40.23% 34.18%
Net margin 2.89% 29.00% 22.50%
Free cash flow margin 37.43% 27.30% 13.70%
Return on equity 0.62% 32.48% 14.65%
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% 15.60%
EPS growth (last fiscal year) (112.57%) (25.87%) (7.86%)
Revenue growth, 5-year CAGR 40.96% 6.75% 9.59%
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 5.44% 8.25% 4.54%
Payout ratio 18.85 1.16 0.76

Size

Metric VNOM WES Oil & Gas Midstream median
Market cap 15.71b 18.24b 3.73b

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