EOG Resources (NYSE:EOG) and Diversified Energy (NYSE:DEC) Critical Survey

Diversified Energy (NYSE:DEC) and EOG Resources (NYSE:EOG) 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, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Valuation & Earnings

This table compares Diversified Energy and EOG Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$868.26 million	0.90	$758.02 million	N/A	N/A
EOG Resources	$24.19 billion	3.11	$7.59 billion	$12.42	10.78

EOG Resources has higher revenue and earnings than Diversified Energy.

Dividends

Diversified Energy pays an annual dividend of $0.81 per share and has a dividend yield of 5.0%. EOG Resources pays an annual dividend of $3.90 per share and has a dividend yield of 2.9%. EOG Resources pays out 31.4% of its earnings in the form of a dividend.

Profitability

This table compares Diversified Energy and EOG Resources’ 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
EOG Resources	29.18%	23.77%	15.24%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Diversified Energy and EOG Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	0	2	0	3.00
EOG Resources	0	13	8	1	2.45

Diversified Energy currently has a consensus target price of $23.00, indicating a potential upside of 42.14%. EOG Resources has a consensus target price of $143.86, indicating a potential upside of 7.43%. Given Diversified Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Diversified Energy is more favorable than EOG Resources.

Insider & Institutional Ownership

26.5% of Diversified Energy shares are held by institutional investors. Comparatively, 89.9% of EOG Resources shares are held by institutional investors. 0.3% of EOG Resources shares are held by 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

EOG Resources beats Diversified Energy on 10 of the 14 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 EOG Resources

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.