WallStSmart

Diamondback Energy Inc (FANG)vsMorningStar Partners, L.P. (TXO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 3933% more annual revenue ($16.37B vs $405.96M). FANG leads profitability with a 9.0% profit margin vs -9.2%. FANG earns a higher WallStSmart Score of 69/100 (B-).

FANG

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.28

TXO

Buy

57

out of 100

Grade: C

Growth: 9.3Profit: 4.0Value: 5.0Quality: 4.8
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FANGUndervalued (+47.4%)

Margin of Safety

+47.4%

Fair Value

$321.05

Current Price

$202.47

$118.58 discount

UndervaluedFair: $321.05Overvalued

Intrinsic value data unavailable for TXO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FANG6 strengths · Avg: 9.5/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
46.1%10/10

Strong operational efficiency at 46.1%

Revenue GrowthGrowth
59.1%10/10

Revenue surging 59.1% year-over-year

EPS GrowthGrowth
179.5%10/10

Earnings expanding 179.5% YoY

Market CapQuality
$53.98B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.59B8/10

Generating 2.6B in free cash flow

TXO4 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
38.2%10/10

Strong operational efficiency at 38.2%

Revenue GrowthGrowth
67.9%10/10

Revenue surging 67.9% year-over-year

EPS GrowthGrowth
1437.0%10/10

Earnings expanding 1437.0% YoY

Areas to Watch

FANG4 concerns · Avg: 2.5/10
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
56.782/10

Expensive relative to growth rate

P/E RatioValuation
204.1x2/10

Premium valuation, high expectations priced in

TXO4 concerns · Avg: 2.3/10
Market CapQuality
$785.68M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-5.8%2/10

ROE of -5.8% — below average capital efficiency

Profit MarginProfitability
-9.2%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull 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 : TXO

The strongest argument for TXO centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 67.9% demonstrates continued momentum.

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 : TXO

The primary concerns for TXO are Market Cap, Piotroski F-Score, Return on Equity.

Key Dynamics to Monitor

FANG carries more volatility with a beta of 0.42 — expect wider price swings.

TXO is growing revenue faster at 67.9% — sustainability is the question.

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

Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FANG scores higher overall (69/100 vs 57/100) and 59.1% revenue growth. Both earn "Strong Buy" and "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.

MorningStar Partners, L.P.

ENERGY · OIL & GAS E&P · USA

TXO Energy Partners, L.P. engages in the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid reserves in North America. The company is headquartered in Fort Worth, Texas.

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