Financial Comparison: Diamondback Energy (NASDAQ:FANG) and Advantage Energy (OTCMKTS:AAVVF)

Advantage Energy (OTCMKTS:AAVVF) and Diamondback Energy (NASDAQ:FANG) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Valuation and Earnings

This table compares Advantage Energy and Diamondback Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Energy	$400.81 million	3.09	$75.26 million	$0.09	82.67
Diamondback Energy	$11.02 billion	4.23	$3.14 billion	$15.80	10.19

Diamondback Energy has higher revenue and earnings than Advantage Energy. Diamondback Energy is trading at a lower price-to-earnings ratio than Advantage Energy, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Advantage Energy has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Advantage Energy and Diamondback Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Energy	0	0	0	1	4.00
Diamondback Energy	0	3	18	2	2.96

Diamondback Energy has a consensus target price of $209.92, suggesting a potential upside of 30.37%. Given Diamondback Energy’s higher possible upside, analysts clearly believe Diamondback Energy is more favorable than Advantage Energy.

Profitability

This table compares Advantage Energy and Diamondback Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Energy	8.62%	2.88%	1.78%
Diamondback Energy	33.64%	13.68%	7.93%

Insider and Institutional Ownership

7.9% of Advantage Energy shares are held by institutional investors. Comparatively, 90.0% of Diamondback Energy shares are held by institutional investors. 0.5% of Diamondback Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Diamondback Energy beats Advantage Energy on 13 of the 15 factors compared between the two stocks.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.

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.