Head to Head Analysis: Diversified Energy (NYSE:DEC) versus Fluence Energy (NASDAQ:FLNC)

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

Profitability

This table compares Diversified Energy and Fluence Energy’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
Fluence Energy	-2.04%	-10.10%	-2.31%

Insider & Institutional Ownership

26.5% of Diversified Energy shares are held by institutional investors. Comparatively, 53.2% of Fluence Energy shares are held by institutional investors. 0.7% of Fluence Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Diversified Energy and Fluence Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	2	6	0	2.75
Fluence Energy	4	14	4	0	2.00

Diversified Energy currently has a consensus price target of $21.40, suggesting a potential upside of 30.85%. Fluence Energy has a consensus price target of $16.05, suggesting a potential upside of 18.36%. Given Diversified Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Diversified Energy is more favorable than Fluence Energy.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$1.83 billion	0.65	$341.11 million	$1.47	11.13
Fluence Energy	$2.55 billion	0.98	-$48.31 million	($0.44)	-30.82

Diversified Energy has higher earnings, but lower revenue than Fluence Energy. Fluence Energy is trading at a lower price-to-earnings ratio than Diversified Energy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Diversified Energy has a beta of -0.23, indicating that its share price is 123% less volatile than the S&P 500. Comparatively, Fluence Energy has a beta of 2.96, indicating that its share price is 196% more volatile than the S&P 500.

Summary

Diversified Energy beats Fluence Energy on 9 of the 14 factors compared between the two stocks.

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 Fluence Energy

Fluence Energy, Inc., through its subsidiaries, offers energy storage products and solution, services, and artificial intelligence enabled software-as-a-service products for renewables and storage applications in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company sells energy storage products with integrated hardware, software, and digital intelligence. Its energy storage products include Gridstack Pro, a large-scale front-of-the-meter application; Gridstack, a front-of-the-meter application; Sunstack, a DC-coupled energy storage product for DC-coupled solar + storage projects; Edgestack, for smaller-scale commercial and industrial use cases; and Ultrastack, for critical system requirements of distribution and transmission networks. The company also provides engineering and delivery services to support the deployment of its storage products; operational and maintenance services; and digital applications. It serves independent power producers, developer, utilities, and other generators. Fluence Energy, Inc. was founded in 2018 and is headquartered in Arlington, Virginia. Fluence Energy, Inc. is a joint venture of Siemens Aktiengesellschaft and The AES Corporation.