WallStSmart

Epsilon Energy Ltd (EPSN)vsDiamondback Energy Inc (FANG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 23915% more annual revenue ($16.25B vs $67.66M). FANG leads profitability with a 9.0% profit margin vs -5.2%. FANG earns a higher WallStSmart Score of 69/100 (B-).

EPSN

Buy

57

out of 100

Grade: C

Growth: 7.3Profit: 5.0Value: 6.0Quality: 4.5
Piotroski: 2/9Altman Z: 0.61

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

EPSNUndervalued (+18.7%)

Margin of Safety

+18.7%

Fair Value

$5.89

Current Price

$6.27

$0.38 discount

UndervaluedFair: $5.89Overvalued
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

EPSN5 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
36.4%10/10

Strong operational efficiency at 36.4%

Revenue GrowthGrowth
57.1%10/10

Revenue surging 57.1% year-over-year

EPS GrowthGrowth
228.6%10/10

Earnings expanding 228.6% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

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

EPSN4 concerns · Avg: 2.5/10
Market CapQuality
$188.67M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-7.3%2/10

ROE of -7.3% — below average capital efficiency

Altman Z-ScoreHealth
0.612/10

Distress zone — elevated risk

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 : EPSN

The strongest argument for EPSN centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 57.1% 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 : EPSN

The primary concerns for EPSN 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

FANG carries more volatility with a beta of 0.41 — expect wider price swings.

EPSN is growing revenue faster at 57.1% — 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 57/100) and 52.5% revenue growth. EPSN offers better value entry with a 18.7% 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.

Epsilon Energy Ltd

ENERGY · OIL & GAS E&P · USA

Epsilon Energy Ltd., an oil and natural gas company, is engaged in the acquisition, development, collection and production of oil and gas reserves 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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