Diversified Energy (NYSE:DEC – Get Free Report) and Greenfire Resources (NYSE:GFR – Get Free Report) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.
Insider and Institutional Ownership
26.5% of Diversified Energy shares are held by institutional investors. Comparatively, 88.9% of Greenfire Resources shares are held by institutional investors. 20.0% of Greenfire Resources 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.
Valuation & Earnings
This table compares Diversified Energy and Greenfire Resources”s gross 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 | 1.04 | $758.02 million | N/A | N/A |
Greenfire Resources | $775.81 million | 0.65 | -$100.50 million | $0.86 | 8.41 |
Profitability
This table compares Diversified Energy and Greenfire Resources’ 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 |
Greenfire Resources | 5.02% | 5.40% | 3.13% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Diversified Energy and Greenfire Resources, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Diversified Energy | 0 | 0 | 2 | 0 | 3.00 |
Greenfire Resources | 0 | 0 | 1 | 0 | 3.00 |
Diversified Energy presently has a consensus target price of $19.50, indicating a potential upside of 20.15%. Greenfire Resources has a consensus target price of $10.50, indicating a potential upside of 45.23%. Given Greenfire Resources’ higher probable upside, analysts plainly believe Greenfire Resources is more favorable than Diversified Energy.
Summary
Greenfire Resources beats Diversified Energy on 7 of the 10 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 Greenfire Resources
Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company is headquartered in Calgary, Canada.
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