Diamondback Energy Inc (FANG)vsFranco-Nevada Corporation (FNV)
FANG
Diamondback Energy Inc
$188.70
-0.92%
ENERGY · Cap: $53.58B
FNV
Franco-Nevada Corporation
$232.11
+1.78%
BASIC MATERIALS · Cap: $45.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Diamondback Energy Inc generates 702% more annual revenue ($14.47B vs $1.80B). FNV leads profitability with a 61.6% profit margin vs 2.0%. FNV appears more attractively valued with a PEG of 11.81. FNV earns a higher WallStSmart Score of 68/100 (B-).
FANG
Hold41
out of 100
Grade: D
FNV
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.6%
Fair Value
$305.11
Current Price
$188.70
$116.41 discount
Margin of Safety
-54.5%
Fair Value
$166.74
Current Price
$232.11
$65.37 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Large-cap with strong market position
Keeps 62 of every $100 in revenue as profit
Strong operational efficiency at 76.1%
Revenue surging 85.8% year-over-year
Earnings expanding 108.8% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
ROE of 0.5% — below average capital efficiency
2.0% margin — thin
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : FANG
The strongest argument for FANG centers on Price/Book, Market Cap.
Bull Case : FNV
The strongest argument for FNV centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 61.6% and operating margin at 76.1%. Revenue growth of 85.8% demonstrates continued momentum.
Bear Case : FANG
The primary concerns for FANG are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 196.3x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.
Bear Case : FNV
The primary concerns for FNV are PEG Ratio, P/E Ratio, Free Cash Flow. A P/E of 40.7x leaves little room for execution misses.
Key Dynamics to Monitor
FANG profiles as a value stock while FNV is a growth play — different risk/reward profiles.
FNV carries more volatility with a beta of 0.89 — expect wider price swings.
FNV is growing revenue faster at 85.8% — sustainability is the question.
FANG generates stronger free cash flow (895M), providing more financial flexibility.
Bottom Line
FNV scores higher overall (68/100 vs 41/100), backed by strong 61.6% margins and 85.8% revenue growth. FANG offers better value entry with a 44.6% margin of safety. 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.
Diamondback Energy Inc
ENERGY · OIL & GAS E&P · USA
Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.
Franco-Nevada Corporation
BASIC MATERIALS · GOLD · USA
Franco-Nevada Corporation is a gold-focused royalty and flow company in the United States, Latin America, Canada, Australia, Europe and Africa, and internationally. The company is headquartered in Toronto, Canada.
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