WallStSmart

Diamondback Energy Inc (FANG)vsMagnolia Oil & Gas Corp (MGY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 1140% more annual revenue ($16.37B vs $1.32B). MGY leads profitability with a 24.4% profit margin vs 9.0%. MGY trades at a lower P/E of 14.9x. FANG earns a higher WallStSmart Score of 69/100 (B-).

FANG

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.28

MGY

Buy

54

out of 100

Grade: C-

Growth: 2.7Profit: 8.5Value: 6.0Quality: 6.5
Piotroski: 3/9Altman Z: 2.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FANGUndervalued (+47.5%)

Margin of Safety

+47.5%

Fair Value

$321.84

Current Price

$188.04

$133.80 discount

UndervaluedFair: $321.84Overvalued

Intrinsic value data unavailable for MGY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FANG5 strengths · Avg: 9.8/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
46.1%10/10

Strong operational efficiency at 46.1%

Revenue GrowthGrowth
59.1%10/10

Revenue surging 59.1% year-over-year

EPS GrowthGrowth
179.5%10/10

Earnings expanding 179.5% YoY

Market CapQuality
$53.98B9/10

Large-cap with strong market position

MGY5 strengths · Avg: 8.8/10
Operating MarginProfitability
35.6%10/10

Strong operational efficiency at 35.6%

Profit MarginProfitability
24.4%9/10

Keeps 24 of every $100 in revenue as profit

Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

P/E RatioValuation
14.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

FANG4 concerns · Avg: 2.5/10
Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
56.782/10

Expensive relative to growth rate

P/E RatioValuation
204.1x2/10

Premium valuation, high expectations priced in

MGY3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-0.3%2/10

Earnings declined 0.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : FANG

The strongest argument for FANG centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 59.1% demonstrates continued momentum.

Bull Case : MGY

The strongest argument for MGY centers on Operating Margin, Profit Margin, Debt/Equity. Profitability is solid with margins at 24.4% and operating margin at 35.6%.

Bear Case : FANG

The primary concerns for FANG are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 204.1x leaves little room for execution misses.

Bear Case : MGY

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

Key Dynamics to Monitor

FANG profiles as a hypergrowth stock while MGY is a value play — different risk/reward profiles.

MGY carries more volatility with a beta of 0.70 — expect wider price swings.

FANG is growing revenue faster at 59.1% — sustainability is the question.

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

Bottom Line

FANG scores higher overall (69/100 vs 54/100) and 59.1% 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.

Diamondback Energy Inc

ENERGY · OIL & GAS E&P · USA

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

Magnolia Oil & Gas Corp

ENERGY · OIL & GAS E&P · USA

Magnolia Oil & Gas Corporation is engaged in the acquisition, development, exploration and production of oil, natural gas and natural gas liquid reserves in the United States. The company is headquartered in Houston, Texas.

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