Analyzing Diversified Energy (NYSE:DEC) and Talos Energy (NYSE:TALO)

Talos Energy (NYSE:TALOGet Free Report) and Diversified Energy (NYSE:DECGet Free Report) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Earnings & Valuation

This table compares Talos Energy and Diversified Energy”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Talos Energy $1.87 billion 0.98 $187.33 million $0.54 18.85
Diversified Energy $749.63 million 1.10 $758.02 million N/A N/A

Diversified Energy has lower revenue, but higher earnings than Talos Energy.

Institutional and Insider Ownership

89.3% of Talos Energy shares are owned by institutional investors. Comparatively, 26.5% of Diversified Energy shares are owned by institutional investors. 0.8% of Talos Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Talos Energy and Diversified Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Talos Energy 0 2 7 0 2.78
Diversified Energy 0 0 2 0 3.00

Talos Energy presently has a consensus target price of $16.28, suggesting a potential upside of 59.90%. Diversified Energy has a consensus target price of $19.50, suggesting a potential upside of 13.70%. Given Talos Energy’s higher probable upside, analysts clearly believe Talos Energy is more favorable than Diversified Energy.

Profitability

This table compares Talos Energy and Diversified Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Talos Energy 3.95% -1.98% -0.86%
Diversified Energy N/A N/A N/A

Summary

Talos Energy beats Diversified Energy on 6 of the 11 factors compared between the two stocks.

About Talos Energy

(Get Free Report)

Talos Energy Inc., through its subsidiaries, engages in the exploration and production of oil, natural gas, and natural gas liquids in the United States and Mexico. It also engages in the development of carbon capture and sequestration. Talos Energy Inc. was founded in 2011 and is headquartered in Houston, Texas.

About Diversified Energy

(Get Free Report)

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.

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