Viper Energy (NASDAQ:VNOM) and Legacy Reserves (OTCMKTS:LGCYQ) Head to Head Comparison

Viper Energy (NASDAQ:VNOM) and Legacy Reserves (OTCMKTS:LGCYQ) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Viper Energy and Legacy Reserves”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viper Energy	$899.75 million	9.77	$200.09 million	$3.80	10.86
Legacy Reserves	N/A	N/A	N/A	N/A	N/A

Viper Energy has higher revenue and earnings than Legacy Reserves.

Profitability

This table compares Viper Energy and Legacy Reserves’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viper Energy	24.65%	6.72%	4.98%
Legacy Reserves	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for Viper Energy and Legacy Reserves, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viper Energy	0	0	13	0	3.00
Legacy Reserves	0	0	0	0	0.00

Viper Energy presently has a consensus target price of $56.08, suggesting a potential upside of 35.85%. Given Viper Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Viper Energy is more favorable than Legacy Reserves.

Insider & Institutional Ownership

87.7% of Viper Energy shares are held by institutional investors. 0.2% of Viper Energy shares are held by insiders. Comparatively, 0.8% of Legacy Reserves shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Viper Energy beats Legacy Reserves on 8 of the 9 factors compared between the two stocks.

About Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

About Legacy Reserves

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.