Financial Review: Stratex Oil & Gas (OTCMKTS:STTX) versus Viper Energy (NASDAQ:VNOM)

Stratex Oil & Gas (OTCMKTS:STTX) and Viper Energy (NASDAQ:VNOM) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Risk and Volatility

Stratex Oil & Gas has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Viper Energy has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Stratex Oil & Gas and Viper Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stratex Oil & Gas	0	0	0	0	0.00
Viper Energy	0	0	16	0	3.00

Viper Energy has a consensus target price of $55.93, suggesting a potential upside of 41.42%. Given Viper Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Viper Energy is more favorable than Stratex Oil & Gas.

Earnings & Valuation

This table compares Stratex Oil & Gas and Viper Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stratex Oil & Gas	N/A	N/A	N/A	N/A	N/A
Viper Energy	$860.39 million	13.26	$359.24 million	$3.46	11.43

Viper Energy has higher revenue and earnings than Stratex Oil & Gas.

Insider and Institutional Ownership

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

Profitability

This table compares Stratex Oil & Gas and Viper Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stratex Oil & Gas	N/A	N/A	N/A
Viper Energy	37.84%	3.92%	3.28%

Summary

Viper Energy beats Stratex Oil & Gas on 10 of the 10 factors compared between the two stocks.

About Stratex Oil & Gas

Stratex Oil & Gas Holdings, Inc., an independent energy company, focuses on the acquisition, exploitation, and development of crude oil in Kansas and Texas, as well as non-operated working interests in North Dakota, Montana, Utah, Colorado, and Kansas. The company is also involved in the sale of oil and gas. The company was formerly known as Poway Muffler and Brake, Inc. and changed its name to Stratex Oil & Gas Holdings, Inc. in May 2012. Stratex Oil & Gas Holdings, Inc. is based in Salt Lake City, Utah.

About Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.