Diamondback Energy (NASDAQ:FANG – Get Free Report) and AleAnna Inc – Class A (NASDAQ:ANNA – Get Free Report) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Risk & Volatility
Diamondback Energy has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, AleAnna Inc – Class A has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.
Insider and Institutional Ownership
90.0% of Diamondback Energy shares are owned by institutional investors. Comparatively, 38.1% of AleAnna Inc – Class A shares are owned by institutional investors. 0.7% of Diamondback Energy shares are owned by insiders. Comparatively, 42.9% of AleAnna Inc – Class A 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.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diamondback Energy | $12.84 billion | 3.13 | $3.14 billion | $16.35 | 8.42 |
| AleAnna Inc – Class A | $2.06 million | 313.15 | $3.42 million | ($0.02) | -485.00 |
Diamondback Energy has higher revenue and earnings than AleAnna Inc – Class A. AleAnna Inc – Class A is trading at a lower price-to-earnings ratio than Diamondback Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Diamondback Energy and AleAnna Inc – Class A’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% |
| AleAnna Inc – Class A | N/A | -11.71% | -0.23% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Diamondback Energy and AleAnna Inc – Class A, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diamondback Energy | 0 | 1 | 19 | 2 | 3.05 |
| AleAnna Inc – Class A | 0 | 0 | 0 | 0 | 0.00 |
Diamondback Energy currently has a consensus price target of $193.09, suggesting a potential upside of 40.34%. Given Diamondback Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Diamondback Energy is more favorable than AleAnna Inc – Class A.
Summary
Diamondback Energy beats AleAnna Inc – Class A on 13 of the 15 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 AleAnna Inc – Class A
AleAnna, Inc. engages in oil and gas exploration and production activities. It focuses on Italy’s natural gas reserves and developing renewable energy solutions. The company was founded in 2007 and is headquartered in Dallas, TX.
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