PHX Minerals (NYSE:PHX – Get Free Report) and Diamondback Energy (NASDAQ:FANG – Get Free Report) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
Earnings & Valuation
This table compares PHX Minerals and Diamondback Energy”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
PHX Minerals | $38.38 million | 3.30 | $13.92 million | $0.11 | 30.73 |
Diamondback Energy | $9.28 billion | 3.41 | $3.14 billion | $17.74 | 10.01 |
Diamondback Energy has higher revenue and earnings than PHX Minerals. Diamondback Energy is trading at a lower price-to-earnings ratio than PHX Minerals, indicating that it is currently the more affordable of the two stocks.
Dividends
Insider & Institutional Ownership
38.2% of PHX Minerals shares are owned by institutional investors. Comparatively, 90.0% of Diamondback Energy shares are owned by institutional investors. 6.4% of PHX Minerals shares are owned by insiders. Comparatively, 0.5% of Diamondback Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares PHX Minerals and Diamondback Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
PHX Minerals | 14.38% | 5.35% | 4.00% |
Diamondback Energy | 37.51% | 19.54% | 11.33% |
Analyst Ratings
This is a breakdown of current ratings and target prices for PHX Minerals and Diamondback Energy, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
PHX Minerals | 0 | 0 | 2 | 0 | 3.00 |
Diamondback Energy | 1 | 6 | 14 | 1 | 2.68 |
PHX Minerals currently has a consensus target price of $4.90, suggesting a potential upside of 44.97%. Diamondback Energy has a consensus target price of $207.24, suggesting a potential upside of 16.74%. Given PHX Minerals’ stronger consensus rating and higher probable upside, analysts plainly believe PHX Minerals is more favorable than Diamondback Energy.
Volatility & Risk
PHX Minerals has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.
Summary
Diamondback Energy beats PHX Minerals on 12 of the 17 factors compared between the two stocks.
About PHX Minerals
PHX Minerals Inc. operates as a natural gas and oil mineral company in the United States. The company produces and sells natural gas, crude oil, and natural gas liquids. Its principal properties are located in Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. The company sells its products to various purchasers, including pipeline and marketing companies. The company was formerly known as Panhandle Oil and Gas Inc. and changed its name to PHX Minerals Inc. in October 2020. PHX Minerals Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.
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.
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