Diamondback Energy Inc (FANG)vsUnion Pacific Corporation (UNP)
FANG
Diamondback Energy Inc
$188.70
-0.92%
ENERGY · Cap: $53.58B
UNP
Union Pacific Corporation
$264.65
-0.09%
INDUSTRIALS · Cap: $157.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Union Pacific Corporation generates 71% more annual revenue ($24.70B vs $14.47B). UNP leads profitability with a 29.2% profit margin vs 2.0%. UNP appears more attractively valued with a PEG of 3.30. UNP earns a higher WallStSmart Score of 60/100 (C).
FANG
Hold41
out of 100
Grade: D
UNP
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.7%
Fair Value
$305.77
Current Price
$188.70
$117.07 discount
Margin of Safety
-75.9%
Fair Value
$150.49
Current Price
$264.65
$114.16 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Large-cap with strong market position
Every $100 of equity generates 41 in profit
Strong operational efficiency at 40.4%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.5B in free cash flow
Areas to Watch
ROE of 0.5% — below average capital efficiency
2.0% margin — thin
Weak financial health signals
Expensive relative to growth rate
Trading at 8.5x book value
3.2% revenue growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : FANG
The strongest argument for FANG centers on Price/Book, Market Cap.
Bull Case : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.2% and operating margin at 40.4%.
Bear Case : FANG
The primary concerns for FANG are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 196.3x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.
Bear Case : UNP
The primary concerns for UNP are Price/Book, Revenue Growth, PEG Ratio.
Key Dynamics to Monitor
UNP carries more volatility with a beta of 0.99 — expect wider price swings.
FANG is growing revenue faster at 9.1% — sustainability is the question.
UNP generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.
Bottom Line
UNP scores higher overall (60/100 vs 41/100), backed by strong 29.2% margins. FANG offers better value entry with a 44.7% margin of safety. 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.
Union Pacific Corporation
INDUSTRIALS · RAILROADS · USA
The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.
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