Comparing Diversified Energy (NYSE:DEC) & Vital Energy (NYSE:VTLE)

Diversified Energy (NYSE:DEC) and Vital Energy (NYSE:VTLE) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

26.5% of Diversified Energy shares are owned by institutional investors. Comparatively, 86.5% of Vital Energy shares are owned by institutional investors. 1.2% of Vital Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Diversified Energy and Vital Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	0	2	0	3.00
Vital Energy	2	6	3	0	2.09

Diversified Energy currently has a consensus price target of $23.00, suggesting a potential upside of 38.55%. Vital Energy has a consensus price target of $46.00, suggesting a potential upside of 34.15%. Given Diversified Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Diversified Energy is more favorable than Vital Energy.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$749.63 million	1.07	$758.02 million	N/A	N/A
Vital Energy	$1.86 billion	0.70	$695.08 million	$14.28	2.40

Diversified Energy has higher earnings, but lower revenue than Vital Energy.

Profitability

This table compares Diversified Energy and Vital Energy’s 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
Vital Energy	25.09%	9.05%	4.65%

Summary

Vital Energy beats Diversified Energy on 7 of the 11 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 Vital Energy

Vital Energy, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company was formerly known as Laredo Petroleum, Inc. and changed its name to Vital Energy, Inc. in January 2023. Vital Energy, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.