WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 2937206% more annual revenue ($16.25B vs $553,160). MTR leads profitability with a 66.0% profit margin vs 9.0%. MTR trades at a lower P/E of 12.3x. FANG earns a higher WallStSmart Score of 69/100 (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

MTR

Hold

44

out of 100

Grade: D

Growth: 2.0Profit: 8.5Value: 5.0Quality: 6.5
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FANGUndervalued (+46.8%)

Margin of Safety

+46.8%

Fair Value

$317.93

Current Price

$186.67

$131.26 discount

UndervaluedFair: $317.93Overvalued
MTRSignificantly Overvalued (-80.8%)

Margin of Safety

-80.8%

Fair Value

$2.65

Current Price

$2.43

$0.22 premium

UndervaluedFair: $2.65Overvalued

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
$51.99B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.59B8/10

Generating 2.6B in free cash flow

MTR4 strengths · Avg: 9.5/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
66.0%10/10

Keeps 66 of every $100 in revenue as profit

Operating MarginProfitability
75.6%10/10

Strong operational efficiency at 75.6%

P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

Areas to Watch

FANG4 concerns · Avg: 3.0/10
P/E RatioValuation
36.3x4/10

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
22.152/10

Expensive relative to growth rate

MTR3 concerns · Avg: 2.3/10
Market CapQuality
$4.57M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-28.4%2/10

Revenue declined 28.4%

EPS GrowthGrowth
-33.3%2/10

Earnings declined 33.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : FANG

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

Bull Case : MTR

The strongest argument for MTR centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 66.0% and operating margin at 75.6%.

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, Revenue Growth, EPS 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 0.42 — expect wider price swings.

FANG is growing revenue faster at 52.5% — 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 44/100) and 52.5% 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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