WallStSmart

Canadian Natural Resources Ltd (CNQ)vsDiamondback Energy Inc (FANG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Natural Resources Ltd generates 171% more annual revenue ($38.76B vs $14.29B). CNQ leads profitability with a 27.9% profit margin vs 11.6%. CNQ appears more attractively valued with a PEG of 3.42. CNQ earns a higher WallStSmart Score of 67/100 (B-).

CNQ

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.5Value: 7.3Quality: 5.0

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

CNQUndervalued (+76.9%)

Margin of Safety

+76.9%

Fair Value

$175.97

Current Price

$50.55

$125.42 discount

UndervaluedFair: $175.97Overvalued
FANGSignificantly Overvalued (-29.4%)

Margin of Safety

-29.4%

Fair Value

$130.64

Current Price

$192.54

$61.90 premium

UndervaluedFair: $130.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNQ6 strengths · Avg: 9.2/10
Revenue GrowthGrowth
150.0%10/10

Revenue surging 150.0% year-over-year

EPS GrowthGrowth
372.3%10/10

Earnings expanding 372.3% YoY

Market CapQuality
$102.42B9/10

Large-cap with strong market position

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

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

Reasonable price relative to book value

Market CapQuality
$51.88B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.40B8/10

Generating 1.4B in free cash flow

Areas to Watch

CNQ1 concerns · Avg: 2.0/10
PEG RatioValuation
3.422/10

Expensive relative to growth rate

FANG4 concerns · Avg: 3.0/10
P/E RatioValuation
31.8x4/10

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
106.322/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CNQ

The strongest argument for CNQ centers on Revenue Growth, EPS Growth, Market Cap. Profitability is solid with margins at 27.9% and operating margin at 19.6%. Revenue growth of 150.0% demonstrates continued momentum.

Bull Case : FANG

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

Bear Case : CNQ

The primary concerns for CNQ are PEG Ratio.

Bear Case : FANG

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

Key Dynamics to Monitor

CNQ profiles as a growth stock while FANG is a declining play — different risk/reward profiles.

CNQ carries more volatility with a beta of 1.06 — expect wider price swings.

CNQ is growing revenue faster at 150.0% — sustainability is the question.

CNQ generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

CNQ scores higher overall (67/100 vs 45/100), backed by strong 27.9% margins and 150.0% revenue growth. Both earn "Strong 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.

Canadian Natural Resources Ltd

ENERGY · OIL & GAS E&P · USA

Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, Canada.

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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