WallStSmart

Black Stone Minerals LP (BSM)vsDiamondback Energy Inc (FANG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 3425% more annual revenue ($14.46B vs $410.17M). BSM leads profitability with a 72.5% profit margin vs 2.0%. BSM appears more attractively valued with a PEG of 1.73. BSM earns a higher WallStSmart Score of 55/100 (C-).

BSM

Buy

55

out of 100

Grade: C-

Growth: 3.3Profit: 8.5Value: 5.3Quality: 6.8
Piotroski: 3/9

FANG

Hold

41

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 4.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BSMSignificantly Overvalued (-58.7%)

Margin of Safety

-58.7%

Fair Value

$9.58

Current Price

$13.86

$4.28 premium

UndervaluedFair: $9.58Overvalued
FANGUndervalued (+40.9%)

Margin of Safety

+40.9%

Fair Value

$286.16

Current Price

$192.62

$93.54 discount

UndervaluedFair: $286.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BSM4 strengths · Avg: 9.5/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Profit MarginProfitability
72.5%10/10

Keeps 73 of every $100 in revenue as profit

Return on EquityProfitability
27.8%9/10

Every $100 of equity generates 28 in profit

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

FANG2 strengths · Avg: 9.5/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Market CapQuality
$53.44B9/10

Large-cap with strong market position

Areas to Watch

BSM3 concerns · Avg: 3.0/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-30.5%2/10

Earnings declined 30.5%

FANG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : BSM

The strongest argument for BSM centers on P/E Ratio, Profit Margin, Return on Equity. Profitability is solid with margins at 72.5% and operating margin at 14.2%.

Bull Case : FANG

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

Bear Case : BSM

The primary concerns for BSM are PEG Ratio, Piotroski F-Score, EPS Growth.

Bear Case : FANG

The primary concerns for FANG are Revenue Growth, Return on Equity, Profit Margin. A P/E of 191.9x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

BSM profiles as a mature stock while FANG is a value play — different risk/reward profiles.

FANG carries more volatility with a beta of 0.39 — expect wider price swings.

BSM is growing revenue faster at 8.5% — sustainability is the question.

FANG generates stronger free cash flow (895M), providing more financial flexibility.

Bottom Line

BSM scores higher overall (55/100 vs 41/100), backed by strong 72.5% margins. FANG offers better value entry with a 40.9% margin of safety. 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.

Black Stone Minerals LP

ENERGY · OIL & GAS E&P · USA

Black Stone Minerals, LP, owns and manages oil and natural gas mining interests. The company is headquartered in Houston, Texas.

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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