Diamondback Energy Inc (FANG)vsMagnolia Oil & Gas Corp (MGY)
FANG
Diamondback Energy Inc
$185.65
+0.62%
ENERGY · Cap: $57.40B
MGY
Magnolia Oil & Gas Corp
$24.02
+1.67%
ENERGY · Cap: $6.60B
Smart Verdict
WallStSmart Research — data-driven comparison
Diamondback Energy Inc generates 998% more annual revenue ($16.25B vs $1.48B). MGY leads profitability with a 28.8% profit margin vs 9.0%. MGY trades at a lower P/E of 10.5x. MGY earns a higher WallStSmart Score of 72/100 (B).
FANG
Strong Buy69
out of 100
Grade: B-
MGY
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+46.8%
Fair Value
$317.93
Current Price
$185.65
$132.28 discount
Intrinsic value data unavailable for MGY.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 48.5%
Revenue surging 52.5% year-over-year
Earnings expanding 179.5% YoY
Large-cap with strong market position
Generating 2.6B in free cash flow
Attractively priced relative to earnings
Strong operational efficiency at 50.7%
Revenue surging 50.1% year-over-year
Earnings expanding 136.6% YoY
Keeps 29 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Areas to Watch
Premium valuation, high expectations priced in
ROE of 4.2% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : FANG
The strongest argument for FANG centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 52.5% demonstrates continued momentum.
Bull Case : MGY
The strongest argument for MGY centers on P/E Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 28.8% and operating margin at 50.7%. Revenue growth of 50.1% demonstrates continued momentum.
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.
Key Dynamics to Monitor
FANG profiles as a hypergrowth stock while MGY is a growth play — different risk/reward profiles.
MGY carries more volatility with a beta of 0.70 — 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
MGY scores higher overall (72/100 vs 69/100), backed by strong 28.8% margins and 50.1% revenue growth. FANG offers better value entry with a 46.8% margin of safety. Both earn "Strong Buy" and "Strong 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.
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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