Crescent Energy (NYSE:CRGY – Get Free Report) and Viper Energy (NASDAQ:VNOM – Get Free Report) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Dividends
Crescent Energy pays an annual dividend of $0.48 per share and has a dividend yield of 4.4%. Viper Energy pays an annual dividend of $1.08 per share and has a dividend yield of 2.7%. Crescent Energy pays out 37.2% of its earnings in the form of a dividend. Viper Energy pays out 40.0% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Crescent Energy has a beta of 2.24, meaning that its share price is 124% more volatile than the S&P 500. Comparatively, Viper Energy has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Crescent Energy | 0 | 1 | 5 | 1 | 3.00 |
| Viper Energy | 0 | 0 | 7 | 0 | 3.00 |
Crescent Energy currently has a consensus target price of $16.38, indicating a potential upside of 51.27%. Viper Energy has a consensus target price of $40.50, indicating a potential upside of 1.99%. Given Crescent Energy’s higher probable upside, analysts clearly believe Crescent Energy is more favorable than Viper Energy.
Profitability
This table compares Crescent Energy and Viper Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Crescent Energy | 2.84% | 13.30% | 2.94% |
| Viper Energy | 24.17% | 8.29% | 6.24% |
Institutional & Insider Ownership
52.1% of Crescent Energy shares are held by institutional investors. Comparatively, 87.7% of Viper Energy shares are held by institutional investors. 13.2% of Crescent Energy shares are held by company insiders. Comparatively, 0.3% of Viper Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Crescent Energy and Viper Energy’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Crescent Energy | $2.38 billion | 0.82 | $67.61 million | $1.29 | 8.39 |
| Viper Energy | $827.70 million | 8.48 | $200.09 million | $2.70 | 14.71 |
Viper Energy has lower revenue, but higher earnings than Crescent Energy. Crescent Energy is trading at a lower price-to-earnings ratio than Viper Energy, indicating that it is currently the more affordable of the two stocks.
About Crescent Energy
Crescent Energy Company, an energy company, acquires, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves. The company holds a portfolio of oil and natural gas assets in key proven regions, including Eagle Ford and Uinta basins. The company is based in Houston, Texas.
About Viper Energy
Viper Energy, Inc. owns and acquires mineral and royalty interests in oil and natural gas properties in the Permian Basin, North America. Viper Energy Partners GP LLC operates as the general partner of the company. The company was formerly known as Viper Energy Partners LP and changed its name to Viper Energy, Inc. in November 2023. The company was founded in 2013 and is based in Midland, Texas. Viper Energy, Inc. is a subsidiary of Diamondback Energy, Inc.
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