Diamondback Energy Inc (FANG)vsMagnolia Oil & Gas Corp (MGY)
FANG
Diamondback Energy Inc
$196.02
-0.53%
ENERGY · Cap: $55.59B
MGY
Magnolia Oil & Gas Corp
$31.44
+0.48%
ENERGY · Cap: $5.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Diamondback Energy Inc generates 990% more annual revenue ($14.29B vs $1.31B). MGY leads profitability with a 24.8% profit margin vs 11.6%. MGY trades at a lower P/E of 18.1x. MGY earns a higher WallStSmart Score of 50/100 (C-).
FANG
Hold45
out of 100
Grade: D+
MGY
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.4%
Fair Value
$130.64
Current Price
$196.02
$65.38 premium
Margin of Safety
-129.3%
Fair Value
$11.76
Current Price
$31.44
$19.68 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B in free cash flow
Keeps 25 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Areas to Watch
Premium valuation, high expectations priced in
ROE of 3.7% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Weak financial health signals
Revenue declined 2.8%
Earnings declined 17.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : FANG
The strongest argument for FANG centers on Market Cap, Price/Book, Free Cash Flow.
Bull Case : MGY
The strongest argument for MGY centers on Profit Margin, Debt/Equity, Price/Book. Profitability is solid with margins at 24.8% and operating margin at 29.6%.
Bear Case : FANG
The primary concerns for FANG are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : MGY
The primary concerns for MGY are Piotroski F-Score, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
MGY carries more volatility with a beta of 0.92 — expect wider price swings.
MGY is growing revenue faster at -2.8% — sustainability is the question.
FANG generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MGY scores higher overall (50/100 vs 45/100), backed by strong 24.8% margins. 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.
Magnolia Oil & Gas Corp
ENERGY · OIL & GAS E&P · USA
Magnolia Oil & Gas Corporation is engaged in the acquisition, development, exploration and production of oil, natural gas and natural gas liquid reserves in the United States. The company is headquartered in Houston, Texas.
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