Critical Review: Lonestar Resources US (OTCMKTS:LONEQ) vs. Viper Energy (NASDAQ:VNOM)

Lonestar Resources US (OTCMKTS:LONEQ) and Viper Energy (NASDAQ:VNOM) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Lonestar Resources US and Viper Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lonestar Resources US	N/A	N/A	N/A
Viper Energy	-4.87%	2.62%	2.18%

Analyst Ratings

This is a summary of current recommendations for Lonestar Resources US and Viper Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lonestar Resources US	0	0	0	0	0.00
Viper Energy	0	1	15	1	3.00

Viper Energy has a consensus target price of $54.47, suggesting a potential upside of 19.37%. Given Viper Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Viper Energy is more favorable than Lonestar Resources US.

Valuation and Earnings

This table compares Lonestar Resources US and Viper Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lonestar Resources US	N/A	N/A	N/A	N/A	N/A
Viper Energy	$1.40 billion	11.70	-$68.00 million	($0.23)	-198.39

Lonestar Resources US has higher earnings, but lower revenue than Viper Energy.

Insider & Institutional Ownership

87.7% of Viper Energy shares are held by institutional investors. 2.9% of Lonestar Resources US shares are held by insiders. Comparatively, 0.3% of Viper Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Viper Energy beats Lonestar Resources US on 8 of the 10 factors compared between the two stocks.

About Lonestar Resources US

Lonestar Resources US Inc., an independent oil and gas company, engages in the acquisition, development, and production of unconventional oil, natural gas liquids, and natural gas properties in the United States. It primarily focuses on Eagle Ford Shale properties that cover an area of 53,831 net acres in Texas counties. The company was incorporated in 2015 and is headquartered in Fort Worth, Texas. On September 30, 2020, Lonestar Resources US Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

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.