Financial Contrast: Viper Energy (NASDAQ:VNOM) versus Crescent Energy (NYSE:CRGY)

Viper Energy (NASDAQ:VNOM) and Crescent Energy (NYSE:CRGY) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Viper Energy pays an annual dividend of $1.08 per share and has a dividend yield of 2.7%. Crescent Energy pays an annual dividend of $0.48 per share and has a dividend yield of 4.5%. Viper Energy pays out 40.0% of its earnings in the form of a dividend. Crescent Energy pays out 37.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Crescent Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Viper Energy and Crescent Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viper Energy	24.17%	8.29%	6.24%
Crescent Energy	2.84%	13.30%	2.94%

Valuation and Earnings

This table compares Viper Energy and Crescent Energy’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viper Energy	$827.70 million	8.52	$200.09 million	$2.70	14.77
Crescent Energy	$2.38 billion	0.81	$67.61 million	$1.29	8.35

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

Institutional & Insider Ownership

87.7% of Viper Energy shares are owned by institutional investors. Comparatively, 52.1% of Crescent Energy shares are owned by institutional investors. 0.3% of Viper Energy shares are owned by insiders. Comparatively, 13.2% of Crescent Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Viper Energy has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Crescent Energy has a beta of 2.24, indicating that its stock price is 124% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Viper Energy and Crescent Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viper Energy	0	0	7	0	3.00
Crescent Energy	0	1	5	1	3.00

Viper Energy currently has a consensus target price of $40.50, indicating a potential upside of 1.55%. Crescent Energy has a consensus target price of $16.38, indicating a potential upside of 52.04%. Given Crescent Energy’s higher probable upside, analysts clearly believe Crescent Energy is more favorable than Viper Energy.

About Viper Energy

Viper Energy, Inc. owns and acquires mineral and royalty interests in oil and natural gas properties in the Permian Basin, North America. Viper Energy Partners GP LLC operates as the general partner of the company. The company was formerly known as Viper Energy Partners LP and changed its name to Viper Energy, Inc. in November 2023. The company was founded in 2013 and is based in Midland, Texas. Viper Energy, Inc. is a subsidiary of Diamondback Energy, Inc.

About Crescent Energy

Crescent Energy Company, an energy company, acquires, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves. The company holds a portfolio of oil and natural gas assets in key proven regions, including Eagle Ford and Uinta basins. The company is based in Houston, Texas.