Diamondback Energy (NASDAQ:FANG) and EQT (NYSE:EQT) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.
Risk and Volatility
Diamondback Energy has a beta of 2.59, meaning that its stock price is 159% more volatile than the S&P 500. Comparatively, EQT has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Profitability
This table compares Diamondback Energy and EQT's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Diamondback Energy | -135.48% | 5.10% | 3.06% |
EQT | -78.35% | -0.58% | -0.30% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Diamondback Energy and EQT, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Diamondback Energy | 0 | 3 | 22 | 1 | 2.92 |
EQT | 1 | 4 | 12 | 0 | 2.65 |
Diamondback Energy currently has a consensus price target of $66.0893, suggesting a potential downside of 22.49%. EQT has a consensus price target of $17.3529, suggesting a potential downside of 3.49%. Given EQT's higher possible upside, analysts plainly believe EQT is more favorable than Diamondback Energy.
Valuation & Earnings
This table compares Diamondback Energy and EQT's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Diamondback Energy | $3.96 billion | 3.40 | $240 million | $6.93 | 12.30 |
EQT | $4.42 billion | 1.14 | $-1,221,690,000.00 | $0.83 | 21.66 |
Diamondback Energy has higher earnings, but lower revenue than EQT. Diamondback Energy is trading at a lower price-to-earnings ratio than EQT, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
92.1% of Diamondback Energy shares are held by institutional investors. Comparatively, 93.8% of EQT shares are held by institutional investors. 0.5% of Diamondback Energy shares are held by company insiders. Comparatively, 0.6% of EQT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Diamondback Energy beats EQT on 9 of the 15 factors compared between the two stocks.