Critical Comparison: Diamondback Energy (NASDAQ:FANG) vs. Osage Exploration and Development (OTCMKTS:OEDVQ)

Osage Exploration and Development (OTCMKTS:OEDVQ) and Diamondback Energy (NASDAQ:FANG) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional & Insider Ownership

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

Analyst Ratings

This is a summary of current recommendations for Osage Exploration and Development and Diamondback Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Osage Exploration and Development	0	0	0	0	0.00
Diamondback Energy	1	3	18	2	2.88

Diamondback Energy has a consensus target price of $210.08, suggesting a potential upside of 18.24%. Given Diamondback Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Diamondback Energy is more favorable than Osage Exploration and Development.

Volatility & Risk

Osage Exploration and Development has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Osage Exploration and Development	N/A	N/A	N/A
Diamondback Energy	33.64%	13.68%	7.93%

Valuation and Earnings

This table compares Osage Exploration and Development and Diamondback Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Osage Exploration and Development	N/A	N/A	N/A	N/A	N/A
Diamondback Energy	$9.58 billion	5.41	$3.14 billion	$17.47	10.17

Diamondback Energy has higher revenue and earnings than Osage Exploration and Development.

Summary

Diamondback Energy beats Osage Exploration and Development on 11 of the 11 factors compared between the two stocks.

About Osage Exploration and Development

Osage Exploration & Development, Inc. is an exploration and production company, which interests in oil and gas wells and prospects. It is focused on the Horizontal Mississippian and Woodford plays in Oklahoma. The company was founded on February 24, 2003 and is headquartered in San Diego, CA.

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.