Head-To-Head Comparison: Diamondback Energy (NASDAQ:FANG) and Repsol (OTCMKTS:REPYY)

Repsol (OTCMKTS:REPYY) and Diamondback Energy (NASDAQ:FANG) are both large-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Repsol and Diamondback Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repsol	0	4	0	1	2.40
Diamondback Energy	0	3	18	2	2.96

Diamondback Energy has a consensus target price of $216.09, indicating a potential upside of 54.23%. Given Diamondback Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Diamondback Energy is more favorable than Repsol.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Repsol	3.10%	11.40%	5.32%
Diamondback Energy	33.64%	13.68%	7.93%

Institutional & Insider Ownership

0.3% of Repsol shares are held by institutional investors. Comparatively, 90.0% of Diamondback Energy shares are held by institutional investors. 1.0% of Repsol shares are held by insiders. Comparatively, 0.5% of Diamondback Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Repsol pays an annual dividend of $0.76 per share and has a dividend yield of 6.0%. Diamondback Energy pays an annual dividend of $4.00 per share and has a dividend yield of 2.9%. Repsol pays out 49.4% of its earnings in the form of a dividend. Diamondback Energy pays out 25.3% 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.

Earnings and Valuation

This table compares Repsol and Diamondback Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repsol	$61.38 billion	0.24	$3.43 billion	$1.54	8.28
Diamondback Energy	$11.02 billion	3.68	$3.14 billion	$15.80	8.87

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

Volatility and Risk

Repsol has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500.

Summary

Diamondback Energy beats Repsol on 12 of the 17 factors compared between the two stocks.

About Repsol

Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.

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.