Diamondback Energy Inc (FANG)vsSM Energy Co (SM)
FANG
Diamondback Energy Inc
$196.02
-0.53%
ENERGY · Cap: $55.59B
SM
SM Energy Co
$31.50
+3.79%
ENERGY · Cap: $7.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Diamondback Energy Inc generates 372% more annual revenue ($14.29B vs $3.03B). SM leads profitability with a 21.4% profit margin vs 11.6%. SM appears more attractively valued with a PEG of 10.98. SM earns a higher WallStSmart Score of 52/100 (C-).
FANG
Hold45
out of 100
Grade: D+
SM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.4%
Fair Value
$130.64
Current Price
$196.02
$65.38 premium
Margin of Safety
+42.9%
Fair Value
$38.35
Current Price
$31.50
$6.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 21 of every $100 in revenue as profit
Strong operational efficiency at 26.9%
Areas to Watch
Premium valuation, high expectations priced in
ROE of 3.7% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Revenue declined 17.1%
Earnings declined 42.3%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : FANG
The strongest argument for FANG centers on Market Cap, Price/Book, Free Cash Flow.
Bull Case : SM
The strongest argument for SM centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 21.4% and operating margin at 26.9%.
Bear Case : FANG
The primary concerns for FANG are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : SM
The primary concerns for SM are PEG Ratio, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
SM carries more volatility with a beta of 0.99 — expect wider price swings.
FANG is growing revenue faster at -9.4% — sustainability is the question.
FANG generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SM scores higher overall (52/100 vs 45/100), backed by strong 21.4% margins. 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.
SM Energy Co
ENERGY · OIL & GAS E&P · USA
SM Energy Company, an independent energy company, is engaged in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the state of Texas. The company is headquartered in Denver, Colorado.
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