WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 998% more annual revenue ($16.25B vs $1.48B). MGY leads profitability with a 28.8% profit margin vs 9.0%. MGY trades at a lower P/E of 10.5x. MGY earns a higher WallStSmart Score of 72/100 (B).

FANG

Strong Buy

69

out of 100

Grade: B-

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

MGY

Strong Buy

72

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 6.7Quality: 6.0
Piotroski: 3/9Altman Z: 2.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FANGUndervalued (+46.8%)

Margin of Safety

+46.8%

Fair Value

$317.93

Current Price

$185.65

$132.28 discount

UndervaluedFair: $317.93Overvalued

Intrinsic value data unavailable for MGY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

MGY6 strengths · Avg: 9.7/10
P/E RatioValuation
10.5x10/10

Attractively priced relative to earnings

Operating MarginProfitability
50.7%10/10

Strong operational efficiency at 50.7%

Revenue GrowthGrowth
50.1%10/10

Revenue surging 50.1% year-over-year

EPS GrowthGrowth
136.6%10/10

Earnings expanding 136.6% YoY

Profit MarginProfitability
28.8%9/10

Keeps 29 of every $100 in revenue as profit

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Areas to Watch

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

MGY1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : FANG

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

Bull Case : MGY

The strongest argument for MGY centers on P/E Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 28.8% and operating margin at 50.7%. Revenue growth of 50.1% demonstrates continued momentum.

Bear Case : FANG

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

Bear Case : MGY

The primary concerns for MGY are Piotroski F-Score.

Key Dynamics to Monitor

FANG profiles as a hypergrowth stock while MGY is a growth 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 52.5% — sustainability is the question.

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

Bottom Line

MGY scores higher overall (72/100 vs 69/100), backed by strong 28.8% margins and 50.1% revenue growth. FANG offers better value entry with a 46.8% margin of safety. Both earn "Strong Buy" and "Strong 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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