Diamondback Energy Inc (FANG)vsKinder Morgan Inc (KMI)
FANG
Diamondback Energy Inc
$188.70
-0.92%
ENERGY · Cap: $53.58B
KMI
Kinder Morgan Inc
$31.41
-0.35%
ENERGY · Cap: $70.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Kinder Morgan Inc generates 21% more annual revenue ($17.52B vs $14.47B). KMI leads profitability with a 18.9% profit margin vs 2.0%. KMI appears more attractively valued with a PEG of 3.87. KMI earns a higher WallStSmart Score of 64/100 (C+).
FANG
Hold41
out of 100
Grade: D
KMI
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.7%
Fair Value
$305.77
Current Price
$188.70
$117.07 discount
Margin of Safety
-29.1%
Fair Value
$24.36
Current Price
$31.41
$7.05 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Large-cap with strong market position
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.9%
Earnings expanding 36.0% YoY
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
Comparative Analysis Report
WallStSmart ResearchBull Case : FANG
The strongest argument for FANG centers on Price/Book, Market Cap.
Bull Case : KMI
The strongest argument for KMI centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 18.9% and operating margin at 29.9%. Revenue growth of 13.8% 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 : KMI
The primary concerns for KMI are PEG Ratio.
Key Dynamics to Monitor
FANG profiles as a value stock while KMI is a mature play — different risk/reward profiles.
KMI carries more volatility with a beta of 0.56 — expect wider price swings.
KMI is growing revenue faster at 13.8% — sustainability is the question.
FANG generates stronger free cash flow (895M), providing more financial flexibility.
Bottom Line
KMI scores higher overall (64/100 vs 41/100), backed by strong 18.9% margins and 13.8% revenue growth. FANG offers better value entry with a 44.7% margin of safety. Both earn "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.
Kinder Morgan Inc
ENERGY · OIL & GAS MIDSTREAM · USA
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals.
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