Reviewing Diversified Energy (NYSE:DEC) and Sunrise New Energy (NASDAQ:EPOW)

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

Volatility and Risk

Sunrise New Energy has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, Diversified Energy has a beta of -0.23, indicating that its share price is 123% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sunrise New Energy	N/A	N/A	N/A
Diversified Energy	N/A	N/A	N/A

Earnings & Valuation

This table compares Sunrise New Energy and Diversified Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunrise New Energy	$65.00 million	0.32	-$12.76 million	N/A	N/A
Diversified Energy	$1.83 billion	0.68	$341.11 million	$1.47	11.63

Diversified Energy has higher revenue and earnings than Sunrise New Energy.

Analyst Ratings

This is a summary of recent ratings and price targets for Sunrise New Energy and Diversified Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunrise New Energy	1	0	0	0	1.00
Diversified Energy	0	2	5	1	2.88

Diversified Energy has a consensus target price of $21.80, suggesting a potential upside of 27.57%. Given Diversified Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Diversified Energy is more favorable than Sunrise New Energy.

Institutional and Insider Ownership

31.9% of Sunrise New Energy shares are owned by institutional investors. Comparatively, 26.5% of Diversified Energy shares are owned by institutional investors. 42.5% of Sunrise New Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Diversified Energy beats Sunrise New Energy on 7 of the 10 factors compared between the two stocks.

About Sunrise New Energy

Sunrise New Energy Co., Ltd. engages in the manufacture and sale of graphite anode material for EVs and other lithium-ion batteries. The company also operates a peer-to-peer knowledge sharing and enterprise service platform business. In addition, it offers education consulting, training, tailored, information technology, business incubation, enterprise information technology integration, health, and agricultural technology services, as well as cultural and artistic exchanges and planning, and conference services. The company was formerly known as Global Internet of People, Inc. Sunrise New Energy Co., Ltd. was founded in 2014 and is headquartered in Zibo, the People’s Republic of China.

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.