WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 995% more annual revenue ($14.46B vs $1.32B). MGY leads profitability with a 24.4% profit margin vs 2.0%. MGY trades at a lower P/E of 16.0x. MGY earns a higher WallStSmart Score of 57/100 (C).

FANG

Hold

41

out of 100

Grade: D

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

MGY

Buy

57

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 (+40.9%)

Margin of Safety

+40.9%

Fair Value

$286.16

Current Price

$192.62

$93.54 discount

UndervaluedFair: $286.16Overvalued

Intrinsic value data unavailable for MGY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Reasonable price relative to book value

Market CapQuality
$53.44B9/10

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
16.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Areas to Watch

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

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, Market Cap.

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 Revenue Growth, Return on Equity, Profit Margin. A P/E of 191.9x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.

Bear Case : MGY

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

Key Dynamics to Monitor

MGY carries more volatility with a beta of 0.69 — 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.

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

Bottom Line

MGY scores higher overall (57/100 vs 41/100), backed by strong 24.4% margins. FANG offers better value entry with a 40.9% margin of safety. Both earn "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.

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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