Financial Review: Stratex Oil & Gas (OTCMKTS:STTX) vs. Diamondback Energy (NASDAQ:FANG)

Diamondback Energy (NASDAQ:FANG) and Stratex Oil & Gas (OTCMKTS:STTX) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Diamondback Energy and Stratex Oil & Gas”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamondback Energy	$15.28 billion	2.71	$3.34 billion	$14.39	10.04
Stratex Oil & Gas	N/A	N/A	N/A	N/A	N/A

Diamondback Energy has higher revenue and earnings than Stratex Oil & Gas.

Insider and Institutional Ownership

90.0% of Diamondback Energy shares are owned by institutional investors. 0.7% of Diamondback Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Diamondback Energy has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Stratex Oil & Gas has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Diamondback Energy and Stratex Oil & Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamondback Energy	0	1	20	2	3.04
Stratex Oil & Gas	0	0	0	0	0.00

Diamondback Energy presently has a consensus target price of $188.55, indicating a potential upside of 30.50%. Given Diamondback Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Diamondback Energy is more favorable than Stratex Oil & Gas.

Profitability

This table compares Diamondback Energy and Stratex Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diamondback Energy	27.32%	9.57%	5.70%
Stratex Oil & Gas	N/A	N/A	N/A

Summary

Diamondback Energy beats Stratex Oil & Gas on 10 of the 11 factors compared between the two stocks.

About Diamondback Energy

Diamondback Energy, Inc., an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. It focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico. The company also owns and operates midstream infrastructure assets, in the Midland and Delaware Basins of the Permian Basin. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.

About Stratex Oil & Gas

Stratex Oil & Gas Holdings, Inc., an independent energy company, focuses on the acquisition, exploitation, and development of crude oil in Kansas and Texas, as well as non-operated working interests in North Dakota, Montana, Utah, Colorado, and Kansas. The company is also involved in the sale of oil and gas. The company was formerly known as Poway Muffler and Brake, Inc. and changed its name to Stratex Oil & Gas Holdings, Inc. in May 2012. Stratex Oil & Gas Holdings, Inc. is based in Salt Lake City, Utah.