WallStSmart

Vaalco Energy Inc (EGY)vsDiamondback Energy Inc (FANG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 4545% more annual revenue ($16.25B vs $349.81M). FANG leads profitability with a 9.0% profit margin vs -31.1%. EGY appears more attractively valued with a PEG of 3.98. FANG earns a higher WallStSmart Score of 69/100 (B-).

EGY

Buy

63

out of 100

Grade: C+

Growth: 8.0Profit: 4.0Value: 5.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.03

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

EGYUndervalued (+48.7%)

Margin of Safety

+48.7%

Fair Value

$9.73

Current Price

$6.32

$3.41 discount

UndervaluedFair: $9.73Overvalued
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

EGY5 strengths · Avg: 9.4/10
Operating MarginProfitability
47.5%10/10

Strong operational efficiency at 47.5%

Revenue GrowthGrowth
39.5%10/10

Revenue surging 39.5% year-over-year

EPS GrowthGrowth
389.6%10/10

Earnings expanding 389.6% YoY

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

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

EGY4 concerns · Avg: 2.5/10
Market CapQuality
$630.10M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.982/10

Expensive relative to growth rate

Return on EquityProfitability
-28.6%2/10

ROE of -28.6% — below average capital efficiency

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 : EGY

The strongest argument for EGY centers on Operating Margin, Revenue Growth, EPS Growth. Revenue growth of 39.5% demonstrates continued momentum.

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 : EGY

The primary concerns for EGY are Market Cap, Piotroski F-Score, PEG Ratio.

Bear Case : FANG

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

Key Dynamics to Monitor

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.

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

Bottom Line

FANG scores higher overall (69/100 vs 63/100) and 52.5% revenue growth. EGY offers better value entry with a 48.7% margin of safety. Both earn "Strong Buy" and "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.

Vaalco Energy Inc

ENERGY · OIL & GAS E&P · USA

VAALCO Energy, Inc., an independent energy company, acquires, explores, develops and produces crude oil and natural gas. 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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