Comparing PEDEVCO (NYSE:PED) & Diamondback Energy (NASDAQ:FANG)

Diamondback Energy (NASDAQ:FANG) and PEDEVCO (NYSE:PED) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

90.0% of Diamondback Energy shares are owned by institutional investors. Comparatively, 3.3% of PEDEVCO shares are owned by institutional investors. 0.5% of Diamondback Energy shares are owned by company insiders. Comparatively, 70.6% of PEDEVCO shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Diamondback Energy and PEDEVCO”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamondback Energy	$11.02 billion	3.47	$3.14 billion	$15.80	8.24
PEDEVCO	$39.55 million	1.26	$260,000.00	$0.20	2.73

Diamondback Energy has higher revenue and earnings than PEDEVCO. PEDEVCO is trading at a lower price-to-earnings ratio than Diamondback Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Diamondback Energy and PEDEVCO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamondback Energy	0	2	19	2	3.00
PEDEVCO	0	0	2	0	3.00

Diamondback Energy presently has a consensus target price of $208.17, indicating a potential upside of 59.86%. PEDEVCO has a consensus target price of $1.63, indicating a potential upside of 197.95%. Given PEDEVCO’s higher probable upside, analysts plainly believe PEDEVCO is more favorable than Diamondback Energy.

Volatility & Risk

Diamondback Energy has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, PEDEVCO has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.

Profitability

This table compares Diamondback Energy and PEDEVCO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diamondback Energy	33.64%	13.68%	7.93%
PEDEVCO	6.57%	1.58%	1.39%

Summary

Diamondback Energy beats PEDEVCO on 11 of the 14 factors compared between the two stocks.

About Diamondback Energy

Diamondback Energy, Inc., an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. It focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico. The company also owns and operates midstream infrastructure assets, in the Midland and Delaware Basins of the Permian Basin. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.

About PEDEVCO

PEDEVCO Corp., an oil and gas company, focuses on the acquisition, development, and production of oil and natural gas assets in the United States. It holds interests in the Permian Basin asset covering an area of approximately 22,721 net acres located in New Mexico; and D-J Basin asset covering an area of approximately 19,214 net acres located in Wyoming. The company is headquartered in Houston, Texas.