Critical Survey: Diamondback Energy (NASDAQ:FANG) and Rock Energy Resources (OTCMKTS:RCKE)

Diamondback Energy (NASDAQ:FANG) and Rock Energy Resources (OTCMKTS:RCKE) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Diamondback Energy and Rock Energy Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamondback Energy	0	1	20	2	3.04
Rock Energy Resources	0	0	0	0	0.00

Diamondback Energy currently has a consensus price target of $192.86, indicating a potential upside of 29.35%. Given Diamondback Energy’s stronger consensus rating and higher possible upside, research analysts clearly believe Diamondback Energy is more favorable than Rock Energy Resources.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamondback Energy	$11.07 billion	3.90	$3.34 billion	$14.07	10.60
Rock Energy Resources	N/A	N/A	N/A	N/A	N/A

Diamondback Energy has higher revenue and earnings than Rock Energy Resources.

Profitability

This table compares Diamondback Energy and Rock Energy Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diamondback Energy	27.25%	9.48%	5.63%
Rock Energy Resources	N/A	N/A	N/A

Insider & Institutional Ownership

90.0% of Diamondback Energy shares are owned by institutional investors. 0.5% of Diamondback Energy shares are owned by company insiders. Comparatively, 88.0% of Rock Energy Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Diamondback Energy beats Rock Energy Resources on 9 of the 10 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 Rock Energy Resources

Rock Energy Resources, Inc., through its subsidiary, engages in the development of gold and associated mineral assets. It holds interests in the Red Arrow mine. The company was founded on April 16, 2004 and is headquartered in Houston, TX.