Diamondback Energy (NASDAQ: FANG) is one of 240 public companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its competitors? We will compare Diamondback Energy to related businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, valuation, dividends and risk.

Valuation & Earnings

This table compares Diamondback Energy and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Diamondback Energy $829.62 million $676.65 million 26.91
Diamondback Energy Competitors $1.39 billion $604.75 million 20.70

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.

Institutional and Insider Ownership

63.1% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 0.4% of Diamondback Energy shares are owned by insiders. Comparatively, 11.5% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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 38.24% 8.09% 6.34%
Diamondback Energy Competitors -442.91% 3.68% 0.73%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Diamondback Energy and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diamondback Energy 0 3 19 0 2.86
Diamondback Energy Competitors 1567 7861 12152 267 2.51

Diamondback Energy presently has a consensus target price of $117.33, suggesting a potential upside of 29.78%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 48.25%. Given Diamondback Energy’s competitors higher probable upside, analysts clearly believe Diamondback Energy has less favorable growth aspects than its competitors.

Volatility & Risk

Diamondback Energy has a beta of 1.08, indicating that its share 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 share price is 41% more volatile than the S&P 500.

Summary

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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