HighPeak Energy (NASDAQ:HPK – Get Free Report) and Diamondback Energy (NASDAQ:FANG – Get Free Report) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.
Analyst Recommendations
This is a summary of recent recommendations and price targets for HighPeak Energy and Diamondback Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HighPeak Energy | 1 | 1 | 0 | 0 | 1.50 |
| Diamondback Energy | 0 | 5 | 24 | 2 | 2.90 |
Diamondback Energy has a consensus target price of $228.43, suggesting a potential upside of 11.26%. Given Diamondback Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Diamondback Energy is more favorable than HighPeak Energy.
Valuation and Earnings
This table compares HighPeak Energy and Diamondback Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HighPeak Energy | $863.36 million | 1.56 | $18.96 million | ($0.79) | -13.45 |
| Diamondback Energy | $16.98 billion | 3.39 | $1.66 billion | $5.13 | 40.02 |
Diamondback Energy has higher revenue and earnings than HighPeak Energy. HighPeak Energy is trading at a lower price-to-earnings ratio than Diamondback Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares HighPeak Energy and Diamondback Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HighPeak Energy | -10.52% | -1.44% | -0.71% |
| Diamondback Energy | 8.58% | 10.10% | 6.16% |
Institutional and Insider Ownership
24.1% of HighPeak Energy shares are held by institutional investors. Comparatively, 90.0% of Diamondback Energy shares are held by institutional investors. 5.6% of HighPeak Energy shares are held by insiders. Comparatively, 0.6% of Diamondback Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
HighPeak Energy has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.
Summary
Diamondback Energy beats HighPeak Energy on 14 of the 15 factors compared between the two stocks.
About HighPeak Energy
HighPeak Energy, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids reserves in the Permian Basin in West Texas and Eastern New Mexico. The company was incorporated in 2019 and is headquartered in Fort Worth, Texas.
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.
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