Reviewing Diamondback Energy (NASDAQ:FANG) & PHX Minerals (NYSE:PHX)

PHX Minerals (NYSE:PHX) and Diamondback Energy (NASDAQ:FANG) 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

PHX Minerals pays an annual dividend of $0.16 per share and has a dividend yield of 4.7%. Diamondback Energy pays an annual dividend of $3.60 per share and has a dividend yield of 2.0%. PHX Minerals pays out 145.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diamondback Energy pays out 20.3% of its earnings in the form of a dividend.

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.