Contrasting Diversified Energy (NYSE:DEC) and CN Energy Group. (NASDAQ:CNEY)

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

Profitability

This table compares Diversified Energy and CN Energy Group.’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
CN Energy Group.	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$1.83 billion	0.60	$341.11 million	$1.47	10.36
CN Energy Group.	$35.57 million	0.08	-$11.14 million	N/A	N/A

Diversified Energy has higher revenue and earnings than CN Energy Group..

Volatility & Risk

Diversified Energy has a beta of -0.23, indicating that its share price is 123% less volatile than the S&P 500. Comparatively, CN Energy Group. has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Diversified Energy and CN Energy Group., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	2	7	0	2.78
CN Energy Group.	1	0	0	0	1.00

Diversified Energy currently has a consensus price target of $21.83, indicating a potential upside of 43.30%. Given Diversified Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Diversified Energy is more favorable than CN Energy Group..

Insider & Institutional Ownership

26.5% of Diversified Energy shares are owned by institutional investors. Comparatively, 7.6% of CN Energy Group. shares are owned by institutional investors. 2.9% of Diversified Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Diversified Energy beats CN Energy Group. on 8 of the 9 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 CN Energy Group.

CN Energy Group. Inc., through its subsidiaries, engages in the manufacture and supply of wood-based activated carbon primarily in China. The company’s activated carbon is used in pharmaceutical manufacturing, industrial manufacturing, water purification, environmental protection, and food and beverage production. It also engages in the generation and supply of biomass electricity; production of steam for heating; sale of minerals, stone, metal materials, construction materials, wood, chemical materials and products, rubber products, and paper products; management and conversion of forest and natural ecosystem; and forest acquisition, rights transfer, and nurturing, and timber harvesting and processing activities. The company was incorporated in 2018 and is based in Lishui, China.