Diamondback Energy Inc (FANG)vsMesa Royalty Trust (MTR)
FANG
Diamondback Energy Inc
$188.04
-0.84%
ENERGY · Cap: $53.98B
MTR
Mesa Royalty Trust
$2.86
0.00%
ENERGY · Cap: $5.39M
Smart Verdict
WallStSmart Research — data-driven comparison
Diamondback Energy Inc generates 2633206% more annual revenue ($16.37B vs $621,690). MTR leads profitability with a 69.3% profit margin vs 9.0%. MTR trades at a lower P/E of 12.6x. FANG earns a higher WallStSmart Score of 69/100 (B-).
FANG
Strong Buy69
out of 100
Grade: B-
MTR
Hold35
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+47.5%
Fair Value
$321.84
Current Price
$188.04
$133.80 discount
Margin of Safety
-60.2%
Fair Value
$2.99
Current Price
$2.86
$0.13 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 46.1%
Revenue surging 59.1% year-over-year
Earnings expanding 179.5% YoY
Large-cap with strong market position
Keeps 69 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
ROE of 1.1% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Operating margin of 0.9%
Revenue declined 46.7%
Earnings declined 99.3%
Comparative Analysis Report
WallStSmart ResearchBull 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 : MTR
The strongest argument for MTR centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 69.3% and operating margin at 0.9%.
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 : MTR
The primary concerns for MTR are Market Cap, Operating Margin, Revenue Growth.
Key Dynamics to Monitor
FANG profiles as a hypergrowth stock while MTR is a declining play — different risk/reward profiles.
MTR carries more volatility with a beta of 0.43 — expect wider price swings.
FANG is growing revenue faster at 59.1% — sustainability is the question.
Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.
Bottom Line
FANG scores higher overall (69/100 vs 35/100) and 59.1% revenue growth. 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.
Diamondback Energy Inc
ENERGY · OIL & GAS E&P · USA
Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.
Mesa Royalty Trust
ENERGY · OIL & GAS E&P · USA
Mesa Royalty Trust owns net royalty interests in various oil and gas producing properties in the United States. The company is headquartered in Houston, Texas.
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