Financial Review: Redeia Corporacion (OTCMKTS:RDEIY) vs. Diversified Energy (NYSE:DEC)

Diversified Energy (NYSE:DEC) and Redeia Corporacion (OTCMKTS:RDEIY) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Dividends

Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 8.0%. Redeia Corporacion pays an annual dividend of $0.43 per share and has a dividend yield of 4.8%. Diversified Energy pays out 78.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Diversified Energy and Redeia Corporacion”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$794.84 million	N/A	-$88.27 million	$1.47	9.82
Redeia Corporacion	$1.73 billion	0.56	$398.69 million	N/A	N/A

Redeia Corporacion has higher revenue and earnings than Diversified Energy.

Profitability

This table compares Diversified Energy and Redeia Corporacion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diversified Energy	N/A	N/A	N/A
Redeia Corporacion	N/A	N/A	N/A

Institutional and Insider Ownership

26.5% of Diversified Energy shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Diversified Energy has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Redeia Corporacion has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Diversified Energy and Redeia Corporacion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	1	0	6	0	2.71
Redeia Corporacion	1	4	0	2	2.43

Diversified Energy presently has a consensus target price of $22.20, indicating a potential upside of 53.85%. Given Diversified Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Diversified Energy is more favorable than Redeia Corporacion.

About Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.

About Redeia Corporacion

Redeia Corporación, S.A. engages in the electricity transmission, and system operation and management of the transmission network for the electricity system in Spain and internationally. The company operates through three segments: Management and Operation of National Electricity Infrastructure; Management and Operation of International Electricity Infrastructure; and Telecommunications (Satellites and Fibre Optic). Its transmission network comprises approximately 45,141 kilometres; and has 94,981 MVA of transformation capacity. The company also provides advisory, engineering, and construction services; and telecommunications, financing, reinsurance, line and substation maintenance, technical consultancy, and satellite telecommunications services. In addition, it manages and constructs energy storage facilities and the water cycle; acquires, holds, manages, and administers equity securities; operates satellite communications system and provides space segment services for the geostationary orbital slots; and sells and leases satellites and spatial capacity. The company was formerly known as Red Eléctrica Corporación, S.A. and changed its name to Redeia Corporación, S.A. in June 2023. Redeia Corporación, S.A. was incorporated in 1985 and is based in Alcobendas, Spain.