Comparing Vitesse Energy (NYSE:VTS) & Viper Energy (NASDAQ:VNOM)

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

Dividends

Vitesse Energy pays an annual dividend of $1.75 per share and has a dividend yield of 11.1%. Viper Energy pays an annual dividend of $1.52 per share and has a dividend yield of 3.6%. Vitesse Energy pays out -350.0% of its earnings in the form of a dividend. Viper Energy pays out -475.0% 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. Vitesse Energy has increased its dividend for 2 consecutive years. Vitesse Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

51.6% of Vitesse Energy shares are owned by institutional investors. Comparatively, 87.7% of Viper Energy shares are owned by institutional investors. 13.9% of Vitesse Energy shares are owned by company insiders. Comparatively, 0.2% of Viper Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Vitesse Energy and Viper Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vitesse Energy	-7.15%	3.53%	2.43%
Viper Energy	-2.77%	2.64%	2.21%

Volatility and Risk

Vitesse Energy has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Viper Energy has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Vitesse Energy and Viper Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vitesse Energy	0	3	0	0	2.00
Viper Energy	0	2	13	1	2.94

Vitesse Energy presently has a consensus target price of $20.00, indicating a potential upside of 26.94%. Viper Energy has a consensus target price of $58.38, indicating a potential upside of 37.15%. Given Viper Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Viper Energy is more favorable than Vitesse Energy.

Valuation and Earnings

This table compares Vitesse Energy and Viper Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vitesse Energy	$275.23 million	2.39	$25.28 million	($0.50)	-31.51
Viper Energy	$1.40 billion	10.96	-$68.00 million	($0.32)	-133.03

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

Summary

Viper Energy beats Vitesse Energy on 10 of the 18 factors compared between the two stocks.

About Vitesse Energy

Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.

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.