WallStSmart

Evolution Petroleum Corporation Inc (EPM)vsDiamondback Energy Inc (FANG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 19419% more annual revenue ($16.25B vs $83.24M). FANG leads profitability with a 9.0% profit margin vs -4.4%. EPM appears more attractively valued with a PEG of 0.69. FANG earns a higher WallStSmart Score of 69/100 (B-).

EPM

Avoid

34

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 7.7Quality: 5.3
Piotroski: 3/9

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

EPMUndervalued (+89.3%)

Margin of Safety

+89.3%

Fair Value

$39.49

Current Price

$3.56

$35.93 discount

UndervaluedFair: $39.49Overvalued
FANGUndervalued (+46.8%)

Margin of Safety

+46.8%

Fair Value

$317.93

Current Price

$189.27

$128.66 discount

UndervaluedFair: $317.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EPM3 strengths · Avg: 8.7/10
Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

FANG6 strengths · Avg: 9.5/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

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

Free Cash FlowQuality
$2.59B8/10

Generating 2.6B in free cash flow

Areas to Watch

EPM4 concerns · Avg: 2.5/10
Market CapQuality
$133.73M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-6.2%2/10

ROE of -6.2% — below average capital efficiency

Revenue GrowthGrowth
-10.6%2/10

Revenue declined 10.6%

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 : EPM

The strongest argument for EPM centers on Debt/Equity, PEG Ratio, Price/Book. PEG of 0.69 suggests the stock is reasonably priced for its growth.

Bull Case : FANG

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

Bear Case : EPM

The primary concerns for EPM are Market Cap, Piotroski F-Score, Return on Equity.

Bear Case : FANG

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

Key Dynamics to Monitor

EPM profiles as a turnaround 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

FANG scores higher overall (69/100 vs 34/100) and 52.5% revenue growth. EPM offers better value entry with a 89.3% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Evolution Petroleum Corporation Inc

ENERGY · OIL & GAS E&P · USA

Evolution Petroleum Corporation, an oil and gas company, is engaged in the development, production, ownership and management of oil and gas properties in the United States. The company is headquartered in Houston, Texas.

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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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