Diamondback Energy Inc (FANG)vsSM Energy Co (SM)
FANG
Diamondback Energy Inc
$204.97
-0.20%
ENERGY · Cap: $57.40B
SM
SM Energy Co
$39.04
+2.45%
ENERGY · Cap: $9.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Diamondback Energy Inc generates 227% more annual revenue ($16.25B vs $4.96B). SM leads profitability with a 20.2% profit margin vs 9.0%. SM appears more attractively valued with a PEG of 0.67. SM earns a higher WallStSmart Score of 90/100 (A).
FANG
Strong Buy69
out of 100
Grade: B-
SM
Exceptional Buy90
out of 100
Grade: A
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+47.0%
Fair Value
$318.64
Current Price
$204.97
$113.67 discount
Margin of Safety
+66.3%
Fair Value
$113.35
Current Price
$39.03
$74.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 48.5%
Revenue surging 52.5% year-over-year
Earnings expanding 179.5% YoY
Large-cap with strong market position
Reasonable price relative to book value
Generating 2.6B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 60.3%
Revenue surging 176.1% year-over-year
Earnings expanding 153.9% YoY
Keeps 20 of every $100 in revenue as profit
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
Grey zone — moderate risk
ROE of 2.3% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : FANG
The strongest argument for FANG centers on Operating Margin, Revenue Growth, EPS Growth. Revenue growth of 52.5% demonstrates continued momentum.
Bull Case : SM
The strongest argument for SM centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 20.2% and operating margin at 60.3%. Revenue growth of 176.1% demonstrates continued momentum.
Bear Case : FANG
The primary concerns for FANG are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : SM
The primary concerns for SM are Altman Z-Score, Return on Equity.
Key Dynamics to Monitor
FANG profiles as a hypergrowth stock while SM is a growth play — different risk/reward profiles.
SM carries more volatility with a beta of 0.75 — expect wider price swings.
SM is growing revenue faster at 176.1% — sustainability is the question.
FANG generates stronger free cash flow (2.6B), providing more financial flexibility.
Bottom Line
SM scores higher overall (90/100 vs 69/100), backed by strong 20.2% margins and 176.1% revenue growth. FANG offers better value entry with a 47.0% margin of safety. Both earn "Exceptional 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.
SM Energy Co
ENERGY · OIL & GAS E&P · USA
SM Energy Company, an independent energy company, is engaged in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the state of Texas. The company is headquartered in Denver, Colorado.
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