Contrasting Bellatrix Exploration (BXE) & Diamondback Energy (FANG)

Bellatrix Exploration (NYSE: BXE) and Diamondback Energy (NASDAQ:FANG) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares Bellatrix Exploration and Diamondback Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bellatrix Exploration -17.99% -1.69% -0.98%
Diamondback Energy 38.24% 8.09% 6.34%

Valuation and Earnings

This table compares Bellatrix Exploration and Diamondback Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bellatrix Exploration $196.77 million 0.60 $305.66 million ($0.74) -3.24
Diamondback Energy $829.62 million 12.68 $676.65 million $3.36 31.89

Diamondback Energy has higher revenue and earnings than Bellatrix Exploration. Bellatrix Exploration is trading at a lower price-to-earnings ratio than Diamondback Energy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Bellatrix Exploration has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Bellatrix Exploration and Diamondback Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bellatrix Exploration 0 3 1 0 2.25
Diamondback Energy 0 3 20 0 2.87

Bellatrix Exploration currently has a consensus target price of $7.08, indicating a potential upside of 195.14%. Diamondback Energy has a consensus target price of $123.05, indicating a potential upside of 14.83%. Given Bellatrix Exploration’s higher probable upside, research analysts plainly believe Bellatrix Exploration is more favorable than Diamondback Energy.

Summary

Diamondback Energy beats Bellatrix Exploration on 9 of the 11 factors compared between the two stocks.

Bellatrix Exploration Company Profile

Bellatrix Exploration Ltd. is an oil and gas exploration company engaged in the exploration for, and the acquisition, development and production of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan. The Company’s properties include Ferrier, Willesden Green, Greater Pembina, Strachan and Harmattan. Ferrier is located over 30 kilometers northwest of Rocky Mountain House, Alberta. The Ferrier and Alder Flats areas produce natural gas and natural gas liquids from the Belly River, Cardium, Notikewin, Falher and Rock Creek zones at depths ranging from 1,800 to 2,700 meters. The Willesden Green area is located approximately 40 kilometers north of Rocky Mountain House, Alberta. Pembina is located over 20 kilometers west of Drayton Valley, Alberta. Strachan is located approximately 10 kilometers south of Rocky Mountain House, Alberta. Harmattan is located approximately 80 kilometers northwest of Calgary near the town of Sundre, Alberta.

Diamondback Energy Company Profile

Diamondback Energy, Inc. is an independent oil and natural gas company. The Company focuses on the acquisition, development, exploration and exploitation of unconventional onshore oil and natural gas reserves in the Permian Basin in West Texas. As of December 31, 2016, the Company’s total net acreage position in the Permian Basin was approximately 105,894 net acres. As of December 31, 2016, the Company, through its subsidiary, Viper Energy Partners LP (Viper), owned mineral interests underlying approximately 107,568 gross acres primarily in Midland County, Texas in the Permian Basin. The Permian Basin area covers a portion of western Texas and eastern New Mexico. The Company’s reserves are located in the Permian Basin of West Texas, in particular in the Clearfork, Spraberry, Wolfcamp, Cline, Strawn and Atoka formations. The Company refers to the Clearfork, Spraberry, Wolfcamp, Strawn and Atoka formations collectively as the Wolfberry play.

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