Diamondback Energy (NASDAQ:FANG – Get Free Report) and Zion Oil & Gas (OTCMKTS:ZNOG – Get Free Report) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Risk and Volatility
Diamondback Energy has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Zion Oil & Gas has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for Diamondback Energy and Zion Oil & Gas, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diamondback Energy | 0 | 1 | 20 | 1 | 3.00 |
| Zion Oil & Gas | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Diamondback Energy and Zion Oil & Gas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Diamondback Energy | 27.32% | 9.57% | 5.70% |
| Zion Oil & Gas | N/A | -19.89% | -18.12% |
Insider and Institutional Ownership
90.0% of Diamondback Energy shares are held by institutional investors. Comparatively, 7.9% of Zion Oil & Gas shares are held by institutional investors. 0.7% of Diamondback Energy shares are held by insiders. Comparatively, 2.7% of Zion Oil & Gas shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Diamondback Energy and Zion Oil & Gas”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diamondback Energy | $11.07 billion | 3.81 | $3.34 billion | $14.39 | 10.24 |
| Zion Oil & Gas | N/A | N/A | -$7.34 million | ($1.77) | -0.15 |
Diamondback Energy has higher revenue and earnings than Zion Oil & Gas. Zion Oil & Gas is trading at a lower price-to-earnings ratio than Diamondback Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Diamondback Energy beats Zion Oil & Gas on 13 of the 14 factors compared between the two stocks.
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.
About Zion Oil & Gas
Zion Oil & Gas, Inc., together with its subsidiaries, operates as an oil and gas exploration company in Israel. It holds a petroleum exploration license onshore Israel, the New Megiddo License 434 comprising an area of approximately 75,000 acres. The company was incorporated in 2000 and is headquartered in Dallas, Texas.
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