Head-To-Head Analysis: Diversified Energy (NYSE:DEC) & Crescent Energy (NYSE:CRGY)

Diversified Energy (NYSE:DEC) and Crescent Energy (NYSE:CRGY) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Dividends

Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 7.7%. Crescent Energy pays an annual dividend of $0.48 per share and has a dividend yield of 3.4%. Diversified Energy pays out 35.9% of its earnings in the form of a dividend. Crescent Energy pays out -960.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Crescent Energy has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Diversified Energy and Crescent Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	3	7	0	2.70
Crescent Energy	1	5	9	1	2.62

Diversified Energy presently has a consensus target price of $22.50, indicating a potential upside of 49.08%. Crescent Energy has a consensus target price of $15.92, indicating a potential upside of 11.89%. Given Diversified Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Diversified Energy is more favorable than Crescent Energy.

Volatility and Risk

Diversified Energy has a beta of -0.35, suggesting that its stock price is 135% less volatile than the S&P 500. Comparatively, Crescent Energy has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Institutional & Insider Ownership

26.5% of Diversified Energy shares are owned by institutional investors. Comparatively, 52.1% of Crescent Energy shares are owned by institutional investors. 2.9% of Diversified Energy shares are owned by insiders. Comparatively, 13.2% of Crescent Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Diversified Energy and Crescent Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diversified Energy	N/A	N/A	N/A
Crescent Energy	1.27%	10.52%	4.44%

Earnings & Valuation

This table compares Diversified Energy and Crescent Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$1.83 billion	0.58	$341.11 million	$3.23	4.67
Crescent Energy	$3.58 billion	1.31	$132.91 million	($0.05)	-284.50

Diversified Energy has higher earnings, but lower revenue than Crescent Energy. Crescent Energy is trading at a lower price-to-earnings ratio than Diversified Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Crescent Energy beats Diversified Energy on 12 of the 18 factors compared between the two stocks.

About Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.

About Crescent Energy

Crescent Energy Company acquires, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves. Its portfolio of assets comprises mid-cycle unconventional and conventional assets in the Eagle Ford and Uinta Basins. It also owns and operates various midstream assets, which provide services to customers. The company is based in Houston, Texas.