MV Oil Trust (NYSE:MVO) and Diamondback Energy (NASDAQ:FANG) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Earnings & Valuation
This table compares MV Oil Trust and Diamondback Energy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MV Oil Trust||$5.50 million||16.20||$16.33 million||N/A||N/A|
|Diamondback Energy||$2.18 billion||7.92||$845.67 million||$5.87||17.82|
Diamondback Energy has higher revenue and earnings than MV Oil Trust.
This table compares MV Oil Trust and Diamondback Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MV Oil Trust||95.62%||N/A||116.58%|
Insider and Institutional Ownership
10.3% of MV Oil Trust shares are owned by institutional investors. Comparatively, 99.1% of Diamondback Energy shares are owned by institutional investors. 0.5% of Diamondback Energy shares are owned 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.
MV Oil Trust pays an annual dividend of $1.22 per share and has a dividend yield of 15.7%. Diamondback Energy pays an annual dividend of $0.75 per share and has a dividend yield of 0.7%. Diamondback Energy pays out 12.8% of its earnings in the form of a dividend. MV Oil Trust has raised its dividend for 2 consecutive years. MV Oil Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and price targets for MV Oil Trust and Diamondback Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MV Oil Trust||0||0||0||0||N/A|
Diamondback Energy has a consensus target price of $160.13, indicating a potential upside of 53.07%. Given Diamondback Energy’s higher probable upside, analysts plainly believe Diamondback Energy is more favorable than MV Oil Trust.
Volatility & Risk
MV Oil Trust has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.
Diamondback Energy beats MV Oil Trust on 10 of the 16 factors compared between the two stocks.
About MV Oil Trust
MV Oil Trust acquires and holds net profits interests in the oil and natural gas properties of MV Partners, LLC. Its properties include approximately 900 producing oil and gas wells located in the Mid-Continent region in the states of Kansas and Colorado. The company was founded in 2006 and is based in Houston, Texas.
About Diamondback Energy
Diamondback Energy, Inc., an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin in West Texas. It primarily focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico. As of December 31, 2018, the company's net acreage position was approximately 461,218 acres in the Permian Basin; and estimated proved oil and natural gas reserves were 992,001 thousand barrels of crude oil equivalent. It also held working interests in 7,279 gross producing wells, as well as royalty interests in 2,645 additional wells. In addition, the company, through its subsidiary, Viper Energy Partners LP, owns mineral interests in approximately 532,295 gross acres and 14,841 net royalty acres in the Permian Basin and Eagle Ford Shale. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.
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