WallStSmart

Diamondback Energy Inc (FANG)vsMesa Royalty Trust (MTR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 2293375% more annual revenue ($14.29B vs $623,290). MTR leads profitability with a 68.7% profit margin vs 11.6%. MTR trades at a lower P/E of 22.6x. MTR earns a higher WallStSmart Score of 58/100 (C).

FANG

Hold

45

out of 100

Grade: D+

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

MTR

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 8.5Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FANGSignificantly Overvalued (-29.4%)

Margin of Safety

-29.4%

Fair Value

$130.64

Current Price

$196.02

$65.38 premium

UndervaluedFair: $130.64Overvalued
MTRUndervalued (+55.5%)

Margin of Safety

+55.5%

Fair Value

$10.76

Current Price

$5.13

$5.63 discount

UndervaluedFair: $10.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FANG3 strengths · Avg: 8.3/10
Market CapQuality
$55.59B9/10

Large-cap with strong market position

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.40B8/10

Generating 1.4B in free cash flow

MTR4 strengths · Avg: 10.0/10
Profit MarginProfitability
68.7%10/10

Keeps 69 of every $100 in revenue as profit

Operating MarginProfitability
59.2%10/10

Strong operational efficiency at 59.2%

Revenue GrowthGrowth
40.1%10/10

Revenue surging 40.1% year-over-year

EPS GrowthGrowth
61.8%10/10

Earnings expanding 61.8% YoY

Areas to Watch

FANG4 concerns · Avg: 3.0/10
P/E RatioValuation
34.4x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
3.7%3/10

ROE of 3.7% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
103.602/10

Expensive relative to growth rate

MTR1 concerns · Avg: 3.0/10
Market CapQuality
$9.69M3/10

Smaller company, higher risk/reward

Comparative Analysis Report

WallStSmart Research

Bull Case : FANG

The strongest argument for FANG centers on Market Cap, Price/Book, Free Cash Flow.

Bull Case : MTR

The strongest argument for MTR centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 68.7% and operating margin at 59.2%. Revenue growth of 40.1% demonstrates continued momentum.

Bear Case : FANG

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

Bear Case : MTR

The primary concerns for MTR are Market Cap.

Key Dynamics to Monitor

FANG profiles as a declining stock while MTR is a growth play — different risk/reward profiles.

FANG carries more volatility with a beta of 0.57 — expect wider price swings.

MTR is growing revenue faster at 40.1% — sustainability is the question.

FANG generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

MTR scores higher overall (58/100 vs 45/100), backed by strong 68.7% margins and 40.1% revenue growth. 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.

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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