WallStSmart

APA Corporation (APA)vsDiamondback Energy Inc (FANG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 90% more annual revenue ($16.25B vs $8.57B). APA leads profitability with a 19.6% profit margin vs 9.0%. APA appears more attractively valued with a PEG of 1.15. APA earns a higher WallStSmart Score of 80/100 (B+).

APA

Strong Buy

80

out of 100

Grade: B+

Growth: 5.3Profit: 8.5Value: 7.3Quality: 4.0
Piotroski: 3/9Altman Z: 1.24

FANG

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 6.0Value: 5.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APAUndervalued (+12.2%)

Margin of Safety

+12.2%

Fair Value

$51.05

Current Price

$44.73

$6.32 discount

UndervaluedFair: $51.05Overvalued
FANGUndervalued (+47.0%)

Margin of Safety

+47.0%

Fair Value

$318.64

Current Price

$204.97

$113.67 discount

UndervaluedFair: $318.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APA6 strengths · Avg: 8.8/10
P/E RatioValuation
9.2x10/10

Attractively priced relative to earnings

Operating MarginProfitability
56.3%10/10

Strong operational efficiency at 56.3%

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EPS GrowthGrowth
26.3%8/10

Earnings expanding 26.3% YoY

Free Cash FlowQuality
$1.14B8/10

Generating 1.1B in free cash flow

FANG6 strengths · Avg: 9.2/10
Operating MarginProfitability
48.5%10/10

Strong operational efficiency at 48.5%

Revenue GrowthGrowth
52.5%10/10

Revenue surging 52.5% year-over-year

EPS GrowthGrowth
179.5%10/10

Earnings expanding 179.5% YoY

Market CapQuality
$57.40B9/10

Large-cap with strong market position

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$2.59B8/10

Generating 2.6B in free cash flow

Areas to Watch

APA2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.242/10

Distress zone — elevated risk

FANG4 concerns · Avg: 3.0/10
P/E RatioValuation
39.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
25.242/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : APA

The strongest argument for APA centers on P/E Ratio, Operating Margin, Return on Equity. Profitability is solid with margins at 19.6% and operating margin at 56.3%. PEG of 1.15 suggests the stock is reasonably priced for its growth.

Bull Case : FANG

The strongest argument for FANG centers on Operating Margin, Revenue Growth, EPS Growth. Revenue growth of 52.5% demonstrates continued momentum.

Bear Case : APA

The primary concerns for APA are Piotroski F-Score, Altman Z-Score.

Bear Case : FANG

The primary concerns for FANG are P/E Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

APA profiles as a mature stock while FANG is a hypergrowth play — different risk/reward profiles.

FANG carries more volatility with a beta of 0.41 — expect wider price swings.

FANG is growing revenue faster at 52.5% — sustainability is the question.

FANG generates stronger free cash flow (2.6B), providing more financial flexibility.

Bottom Line

APA scores higher overall (80/100 vs 69/100), backed by strong 19.6% margins. FANG offers better value entry with a 47.0% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

APA Corporation

ENERGY · OIL & GAS E&P · USA

APA Corporation is the holding company for Apache Corporation, a company engaged in hydrocarbon exploration. It is organized in Delaware and headquartered in Houston.

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Diamondback Energy Inc

ENERGY · OIL & GAS E&P · USA

Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.

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