Rancher Energy (OTCMKTS:TRXO) and Diamondback Energy (NASDAQ:FANG) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Earnings and Valuation
This table compares Rancher Energy and Diamondback Energy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diamondback Energy||$2.18 billion||6.27||$845.67 million||$5.87||14.25|
Diamondback Energy has higher revenue and earnings than Rancher Energy.
Volatility & Risk
Rancher Energy has a beta of 7.3, meaning that its stock price is 630% more volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.
Insider & Institutional Ownership
99.2% of Diamondback Energy shares are owned by institutional investors. 18.4% of Rancher Energy shares are owned by company insiders. Comparatively, 0.5% of Diamondback Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Diamondback Energy pays an annual dividend of $0.75 per share and has a dividend yield of 0.9%. Rancher Energy does not pay a dividend. Diamondback Energy pays out 12.8% of its earnings in the form of a dividend.
This table compares Rancher Energy and Diamondback Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for Rancher Energy and Diamondback Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Diamondback Energy has a consensus price target of $150.55, suggesting a potential upside of 80.00%. Given Diamondback Energy’s higher probable upside, analysts clearly believe Diamondback Energy is more favorable than Rancher Energy.
Diamondback Energy beats Rancher Energy on 9 of the 12 factors compared between the two stocks.
About Rancher Energy
T-Rex Oil, Inc. engages in the acquisition, exploration, and development of oil and gas properties in the United States. The company owns various properties, which are primarily located in the Rocky Mountain region of Wyoming, as well as Nebraska. T-Rex Oil, Inc. is headquartered in Broomfield, Colorado.
About Diamondback Energy
Diamondback Energy, Inc., an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin in West Texas. It primarily 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. As of December 31, 2018, the company's net acreage position was approximately 461,218 acres in the Permian Basin; and estimated proved oil and natural gas reserves were 992,001 thousand barrels of crude oil equivalent. It also held working interests in 7,279 gross producing wells, as well as royalty interests in 2,645 additional wells. In addition, the company, through its subsidiary, Viper Energy Partners LP, owns mineral interests in approximately 532,295 gross acres and 14,841 net royalty acres in the Permian Basin and Eagle Ford Shale. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.
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