Reviewing Diamondback Energy (NASDAQ:FANG) and New Concept Energy (NYSE:GBR)

Diamondback Energy (NASDAQ:FANG – Get Rating) and New Concept Energy (NYSE:GBR – Get Rating) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares Diamondback Energy and New Concept Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diamondback Energy	45.48%	29.29%	17.69%
New Concept Energy	66.11%	2.66%	2.62%

Earnings and Valuation

This table compares Diamondback Energy and New Concept Energy’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamondback Energy	$9.64 billion	2.34	$4.39 billion	$24.63	5.00
New Concept Energy	$100,000.00	N/A	$70,000.00	$0.03	35.35

Diamondback Energy has higher revenue and earnings than New Concept Energy. Diamondback Energy is trading at a lower price-to-earnings ratio than New Concept Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Diamondback Energy and New Concept Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamondback Energy	1	1	17	1	2.90
New Concept Energy	0	0	0	0	N/A

Diamondback Energy presently has a consensus price target of $181.45, suggesting a potential upside of 47.38%. Given Diamondback Energy’s higher possible upside, equities analysts plainly believe Diamondback Energy is more favorable than New Concept Energy.

Institutional and Insider Ownership

89.8% of Diamondback Energy shares are owned by institutional investors. Comparatively, 4.2% of New Concept Energy shares are owned by institutional investors. 0.4% of Diamondback Energy shares are owned by insiders. Comparatively, 2.1% of New Concept Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Diamondback Energy has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500. Comparatively, New Concept Energy has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Summary

Diamondback Energy beats New Concept Energy on 10 of the 13 factors compared between the two stocks.

About Diamondback Energy

(Get Rating)

Diamondback Energy, Inc. is an independent oil and natural gas company, which engages in the acquisition, development, exploration, and exploitation of unconventional, onshore oil, and natural gas reserves. It operates through the Upstream and Midstream Services segments. The Upstream segment focuses on the Permian Basin operations in West Texas. The Midstream Services segment is involved in the Midland and Delaware Basins. The company was founded in December 2007 and is headquartered in Midland, TX.

About New Concept Energy

(Get Rating)

New Concept Energy, Inc. engages in the provision of real estate rental services. It also maintains property and liability insurance intended to cover claims for its real estate and corporate operations. The company was founded in 1978 and is headquartered in Dallas, TX.