WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 3510% more annual revenue ($14.47B vs $400.98M). BSM leads profitability with a 74.8% profit margin vs 2.0%. BSM appears more attractively valued with a PEG of 1.22. BSM earns a higher WallStSmart Score of 69/100 (B-).

BSM

Strong Buy

69

out of 100

Grade: B-

Growth: 4.7Profit: 10.0Value: 6.0Quality: 5.0

FANG

Hold

41

out of 100

Grade: D

Growth: 5.3Profit: 4.0Value: 4.7Quality: 3.3
Piotroski: 1/9Altman Z: 1.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BSMSignificantly Overvalued (-43.4%)

Margin of Safety

-43.4%

Fair Value

$10.60

Current Price

$13.30

$2.70 premium

UndervaluedFair: $10.60Overvalued
FANGUndervalued (+44.7%)

Margin of Safety

+44.7%

Fair Value

$305.77

Current Price

$188.70

$117.07 discount

UndervaluedFair: $305.77Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BSM5 strengths · Avg: 9.8/10
P/E RatioValuation
10.5x10/10

Attractively priced relative to earnings

Profit MarginProfitability
74.8%10/10

Keeps 75 of every $100 in revenue as profit

Operating MarginProfitability
82.7%10/10

Strong operational efficiency at 82.7%

EPS GrowthGrowth
65.5%10/10

Earnings expanding 65.5% YoY

Return on EquityProfitability
26.6%9/10

Every $100 of equity generates 27 in profit

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

Reasonable price relative to book value

Market CapQuality
$53.58B9/10

Large-cap with strong market position

Areas to Watch

BSM1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-11.6%2/10

Revenue declined 11.6%

FANG4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.5%3/10

ROE of 0.5% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
57.132/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : BSM

The strongest argument for BSM centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 74.8% and operating margin at 82.7%. PEG of 1.22 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 : BSM

The primary concerns for BSM are Revenue Growth.

Bear Case : FANG

The primary concerns for FANG are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 196.3x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

BSM 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 9.1% — sustainability is the question.

Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BSM scores higher overall (69/100 vs 41/100), backed by strong 74.8% margins. FANG offers better value entry with a 44.7% 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.

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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