WallStSmart

Black Stone Minerals LP (BSM)vsDiamondback Energy Inc (FANG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 3736% more annual revenue ($16.25B vs $423.60M). BSM leads profitability with a 66.9% profit margin vs 9.0%. BSM appears more attractively valued with a PEG of 1.37. FANG earns a higher WallStSmart Score of 69/100 (B-).

BSM

Buy

65

out of 100

Grade: C+

Growth: 3.3Profit: 9.5Value: 5.3Quality: 7.3
Piotroski: 3/9

FANG

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 6.0Value: 5.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BSMSignificantly Overvalued (-53.5%)

Margin of Safety

-53.5%

Fair Value

$9.90

Current Price

$14.76

$4.86 premium

UndervaluedFair: $9.90Overvalued
FANGUndervalued (+46.8%)

Margin of Safety

+46.8%

Fair Value

$317.93

Current Price

$184.50

$133.43 discount

UndervaluedFair: $317.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BSM5 strengths · Avg: 9.2/10
Profit MarginProfitability
66.9%10/10

Keeps 67 of every $100 in revenue as profit

Operating MarginProfitability
95.4%10/10

Strong operational efficiency at 95.4%

Return on EquityProfitability
27.8%9/10

Every $100 of equity generates 28 in profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

FANG6 strengths · Avg: 9.5/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
48.5%10/10

Strong operational efficiency at 48.5%

Revenue GrowthGrowth
52.5%10/10

Revenue surging 52.5% year-over-year

EPS GrowthGrowth
179.5%10/10

Earnings expanding 179.5% YoY

Market CapQuality
$57.40B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.59B8/10

Generating 2.6B in free cash flow

Areas to Watch

BSM2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-12.0%2/10

Earnings declined 12.0%

FANG4 concerns · Avg: 3.0/10
P/E RatioValuation
39.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
25.242/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : BSM

The strongest argument for BSM centers on Profit Margin, Operating Margin, Return on Equity. Profitability is solid with margins at 66.9% and operating margin at 95.4%. Revenue growth of 13.2% demonstrates continued momentum.

Bull Case : FANG

The strongest argument for FANG centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 52.5% demonstrates continued momentum.

Bear Case : BSM

The primary concerns for BSM are Piotroski F-Score, EPS Growth.

Bear Case : FANG

The primary concerns for FANG are P/E Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

BSM profiles as a mature stock while FANG is a hypergrowth play — different risk/reward profiles.

FANG carries more volatility with a beta of 0.41 — expect wider price swings.

FANG is growing revenue faster at 52.5% — sustainability is the question.

FANG generates stronger free cash flow (2.6B), providing more financial flexibility.

Bottom Line

FANG scores higher overall (69/100 vs 65/100) and 52.5% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Black Stone Minerals LP

ENERGY · OIL & GAS E&P · USA

Black Stone Minerals, LP, owns and manages oil and natural gas mining interests. The company is headquartered in Houston, Texas.

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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