WallStSmart

Diamondback Energy Inc (FANG)vsMesa Royalty Trust (MTR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 2633206% more annual revenue ($16.37B vs $621,690). MTR leads profitability with a 69.3% profit margin vs 9.0%. MTR trades at a lower P/E of 12.6x. FANG earns a higher WallStSmart Score of 69/100 (B-).

FANG

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.28

MTR

Hold

35

out of 100

Grade: F

Growth: 2.0Profit: 7.5Value: 5.0Quality: 6.5
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FANGUndervalued (+47.5%)

Margin of Safety

+47.5%

Fair Value

$321.84

Current Price

$188.04

$133.80 discount

UndervaluedFair: $321.84Overvalued
MTRSignificantly Overvalued (-60.2%)

Margin of Safety

-60.2%

Fair Value

$2.99

Current Price

$2.86

$0.13 premium

UndervaluedFair: $2.99Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FANG5 strengths · Avg: 9.8/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
46.1%10/10

Strong operational efficiency at 46.1%

Revenue GrowthGrowth
59.1%10/10

Revenue surging 59.1% year-over-year

EPS GrowthGrowth
179.5%10/10

Earnings expanding 179.5% YoY

Market CapQuality
$53.98B9/10

Large-cap with strong market position

MTR3 strengths · Avg: 8.7/10
Profit MarginProfitability
69.3%10/10

Keeps 69 of every $100 in revenue as profit

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

FANG4 concerns · Avg: 2.5/10
Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
56.782/10

Expensive relative to growth rate

P/E RatioValuation
204.1x2/10

Premium valuation, high expectations priced in

MTR4 concerns · Avg: 2.5/10
Market CapQuality
$5.39M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.9%3/10

Operating margin of 0.9%

Revenue GrowthGrowth
-46.7%2/10

Revenue declined 46.7%

EPS GrowthGrowth
-99.3%2/10

Earnings declined 99.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : FANG

The strongest argument for FANG centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 59.1% demonstrates continued momentum.

Bull Case : MTR

The strongest argument for MTR centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 69.3% and operating margin at 0.9%.

Bear Case : FANG

The primary concerns for FANG are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 204.1x leaves little room for execution misses.

Bear Case : MTR

The primary concerns for MTR are Market Cap, Operating Margin, Revenue Growth.

Key Dynamics to Monitor

FANG profiles as a hypergrowth stock while MTR is a declining play — different risk/reward profiles.

MTR carries more volatility with a beta of 0.43 — expect wider price swings.

FANG is growing revenue faster at 59.1% — sustainability is the question.

Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FANG scores higher overall (69/100 vs 35/100) and 59.1% revenue growth. 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.

Mesa Royalty Trust

ENERGY · OIL & GAS E&P · USA

Mesa Royalty Trust owns net royalty interests in various oil and gas producing properties in the United States. The company is headquartered in Houston, Texas.

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