WallStSmart

APA Corporation (APA)vsDiamondback Energy Inc (FANG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 65% more annual revenue ($14.29B vs $8.69B). APA leads profitability with a 16.5% profit margin vs 11.6%. APA appears more attractively valued with a PEG of 4.47. APA earns a higher WallStSmart Score of 62/100 (C+).

APA

Buy

62

out of 100

Grade: C+

Growth: 2.0Profit: 9.0Value: 5.3Quality: 5.0
Piotroski: 3/9Altman Z: 1.12

FANG

Hold

45

out of 100

Grade: D+

Growth: 5.3Profit: 4.0Value: 4.7Quality: 3.3
Piotroski: 1/9Altman Z: 1.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APAFair Value (-4.2%)

Margin of Safety

-4.2%

Fair Value

$27.13

Current Price

$39.11

$11.98 premium

UndervaluedFair: $27.13Overvalued
FANGSignificantly Overvalued (-29.1%)

Margin of Safety

-29.1%

Fair Value

$130.87

Current Price

$192.54

$61.67 premium

UndervaluedFair: $130.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APA4 strengths · Avg: 9.3/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

Operating MarginProfitability
30.6%10/10

Strong operational efficiency at 30.6%

Return on EquityProfitability
25.3%9/10

Every $100 of equity generates 25 in profit

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

FANG3 strengths · Avg: 9.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Market CapQuality
$54.31B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.40B8/10

Generating 1.4B in free cash flow

Areas to Watch

APA4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.472/10

Expensive relative to growth rate

Revenue GrowthGrowth
-28.0%2/10

Revenue declined 28.0%

EPS GrowthGrowth
-18.2%2/10

Earnings declined 18.2%

FANG4 concerns · Avg: 3.0/10
P/E RatioValuation
33.5x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
3.7%3/10

ROE of 3.7% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
102.402/10

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 16.5% and operating margin at 30.6%.

Bull Case : FANG

The strongest argument for FANG centers on Price/Book, Market Cap, Free Cash Flow.

Bear Case : APA

The primary concerns for APA are Piotroski F-Score, PEG Ratio, Revenue Growth.

Bear Case : FANG

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

Key Dynamics to Monitor

APA carries more volatility with a beta of 0.71 — expect wider price swings.

FANG is growing revenue faster at -9.4% — sustainability is the question.

FANG generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.

Bottom Line

APA scores higher overall (62/100 vs 45/100), backed by strong 16.5% margins. Both earn "Buy" and "Hold" 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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