Diamondback Energy (NASDAQ: FANG) is one of 240 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its competitors? We will compare Diamondback Energy to related companies based on the strength of its dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.
Institutional & Insider Ownership
62.2% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 0.4% of Diamondback Energy shares are held by insiders. Comparatively, 11.4% of shares of all “Oil & Gas Exploration and Production” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Diamondback Energy and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diamondback Energy Competitors||1572||7866||12165||268||2.51|
Diamondback Energy currently has a consensus target price of $115.95, indicating a potential upside of 23.59%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 44.90%. Given Diamondback Energy’s competitors higher possible upside, analysts plainly believe Diamondback Energy has less favorable growth aspects than its competitors.
This table compares Diamondback Energy and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diamondback Energy Competitors||-442.14%||3.59%||0.69%|
Valuation and Earnings
This table compares Diamondback Energy and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Diamondback Energy||$829.62 million||$676.65 million||27.92|
|Diamondback Energy Competitors||$1.42 billion||$608.95 million||21.15|
Diamondback Energy’s competitors have higher revenue, but lower earnings than Diamondback Energy. Diamondback Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Volatility & Risk
Diamondback Energy has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Diamondback Energy’s competitors have a beta of 1.41, indicating that their average stock price is 41% more volatile than the S&P 500.
Diamondback Energy beats its competitors on 7 of the 13 factors compared.
Diamondback Energy Company Profile
Diamondback Energy, Inc. is an independent oil and natural gas company. The Company focuses on the acquisition, development, exploration and exploitation of unconventional onshore oil and natural gas reserves in the Permian Basin in West Texas. As of December 31, 2016, the Company’s total net acreage position in the Permian Basin was approximately 105,894 net acres. As of December 31, 2016, the Company, through its subsidiary, Viper Energy Partners LP (Viper), owned mineral interests underlying approximately 107,568 gross acres primarily in Midland County, Texas in the Permian Basin. The Permian Basin area covers a portion of western Texas and eastern New Mexico. The Company’s reserves are located in the Permian Basin of West Texas, in particular in the Clearfork, Spraberry, Wolfcamp, Cline, Strawn and Atoka formations. The Company refers to the Clearfork, Spraberry, Wolfcamp, Strawn and Atoka formations collectively as the Wolfberry play.
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