Diamondback Energy Inc (FANG)vsSM Energy Co (SM)
FANG
Diamondback Energy Inc
$192.62
-5.09%
ENERGY · Cap: $56.94B
SM
SM Energy Co
$33.95
-0.42%
ENERGY · Cap: $7.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Diamondback Energy Inc generates 300% more annual revenue ($14.46B vs $3.62B). SM leads profitability with a 3.6% profit margin vs 2.0%. SM appears more attractively valued with a PEG of 0.54. SM earns a higher WallStSmart Score of 53/100 (C-).
FANG
Hold41
out of 100
Grade: D
SM
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.1%
Fair Value
$286.80
Current Price
$192.62
$94.18 discount
Margin of Safety
+61.7%
Fair Value
$84.07
Current Price
$33.95
$50.12 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Large-cap with strong market position
Reasonable price relative to book value
Revenue surging 73.0% year-over-year
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
4.2% revenue growth
ROE of 1.1% — below average capital efficiency
2.0% margin — thin
Weak financial health signals
Grey zone — moderate risk
ROE of 2.3% — below average capital efficiency
3.6% margin — thin
Earnings declined 42.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : FANG
The strongest argument for FANG centers on Price/Book, Market Cap.
Bull Case : SM
The strongest argument for SM centers on Price/Book, Revenue Growth, PEG Ratio. Revenue growth of 73.0% demonstrates continued momentum. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bear Case : FANG
The primary concerns for FANG are Revenue Growth, Return on Equity, Profit Margin. A P/E of 208.7x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.
Bear Case : SM
The primary concerns for SM are Altman Z-Score, Return on Equity, Profit Margin. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
FANG profiles as a value stock while SM is a hypergrowth play — different risk/reward profiles.
SM carries more volatility with a beta of 0.74 — expect wider price swings.
SM is growing revenue faster at 73.0% — sustainability is the question.
FANG generates stronger free cash flow (895M), providing more financial flexibility.
Bottom Line
SM scores higher overall (53/100 vs 41/100) and 73.0% revenue growth. FANG offers better value entry with a 41.1% 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.
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.
Compare with Other OIL & GAS E&P Stocks
Want to dig deeper into these stocks?