WallStSmart

APA Corporation (APA)vsDiamondback Energy Inc (FANG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 73% more annual revenue ($14.46B vs $8.37B). APA leads profitability with a 18.3% profit margin vs 2.0%. APA appears more attractively valued with a PEG of 0.62. APA earns a higher WallStSmart Score of 80/100 (B+).

APA

Strong Buy

80

out of 100

Grade: B+

Growth: 4.7Profit: 8.5Value: 8.7Quality: 4.0
Piotroski: 3/9Altman Z: 1.24

FANG

Hold

41

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 4.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APAUndervalued (+26.1%)

Margin of Safety

+26.1%

Fair Value

$50.09

Current Price

$38.22

$11.87 discount

UndervaluedFair: $50.09Overvalued
FANGUndervalued (+41.1%)

Margin of Safety

+41.1%

Fair Value

$286.80

Current Price

$192.62

$94.18 discount

UndervaluedFair: $286.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APA6 strengths · Avg: 8.8/10
P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Operating MarginProfitability
38.5%10/10

Strong operational efficiency at 38.5%

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
0.628/10

Growing faster than its price suggests

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

EPS GrowthGrowth
32.2%8/10

Earnings expanding 32.2% YoY

FANG2 strengths · Avg: 9.5/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Market CapQuality
$56.94B9/10

Large-cap with strong market position

Areas to Watch

APA3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-11.9%2/10

Revenue declined 11.9%

Altman Z-ScoreHealth
1.242/10

Distress zone — elevated risk

FANG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : APA

The strongest argument for APA centers on P/E Ratio, Operating Margin, Return on Equity. Profitability is solid with margins at 18.3% and operating margin at 38.5%. PEG of 0.62 suggests the stock is reasonably priced for its growth.

Bull Case : FANG

The strongest argument for FANG centers on Price/Book, Market Cap.

Bear Case : APA

The primary concerns for APA are Piotroski F-Score, Revenue Growth, Altman Z-Score.

Bear Case : FANG

The primary concerns for FANG are Revenue Growth, Return on Equity, Profit Margin. A P/E of 208.7x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

APA profiles as a declining stock while FANG is a value play — different risk/reward profiles.

FANG carries more volatility with a beta of 0.44 — expect wider price swings.

FANG is growing revenue faster at 4.2% — sustainability is the question.

FANG generates stronger free cash flow (895M), providing more financial flexibility.

Bottom Line

APA scores higher overall (80/100 vs 41/100), backed by strong 18.3% margins. FANG offers better value entry with a 41.1% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

APA Corporation

ENERGY · OIL & GAS E&P · USA

APA Corporation is the holding company for Apache Corporation, a company engaged in hydrocarbon exploration. It is organized in Delaware and headquartered in Houston.

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Diamondback Energy Inc

ENERGY · OIL & GAS E&P · USA

Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.

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