Diversified Energy (DEC) and Its Competitors Critical Analysis

Diversified Energy (NYSE:DEC) is one of 75 publicly-traded companies in the “Other Alt Energy” industry, but how does it compare to its rivals? We will compare Diversified Energy to similar businesses based on the strength of its valuation, profitability, dividends, risk, earnings, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Diversified Energy and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Diversified Energy	$794.84 million	-$88.27 million	10.06
Diversified Energy Competitors	$20.83 billion	$321.02 million	-1.27

Diversified Energy’s rivals have higher revenue and earnings than Diversified Energy. Diversified Energy is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Diversified Energy has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Diversified Energy’s rivals have a beta of -76.00, meaning that their average stock price is 7,700% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Diversified Energy and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	1	0	4	0	2.60
Diversified Energy Competitors	435	1203	1856	82	2.44

Diversified Energy currently has a consensus price target of $21.75, suggesting a potential upside of 47.01%. As a group, “Other Alt Energy” companies have a potential upside of 11.92%. Given Diversified Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Diversified Energy is more favorable than its rivals.

Institutional & Insider Ownership

26.5% of Diversified Energy shares are held by institutional investors. Comparatively, 40.6% of shares of all “Other Alt Energy” companies are held by institutional investors. 17.1% of shares of all “Other Alt Energy” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Diversified Energy and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diversified Energy	N/A	N/A	N/A
Diversified Energy Competitors	-24.65%	-22.68%	-3.33%

Dividends

Diversified Energy pays an annual dividend of $0.81 per share and has a dividend yield of 5.5%. Diversified Energy pays out 55.1% of its earnings in the form of a dividend. As a group, “Other Alt Energy” companies pay a dividend yield of 1.0% and pay out 50.2% of their earnings in the form of a dividend.

Summary

Diversified Energy beats its rivals on 9 of the 15 factors compared.

About Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.