Critical Survey: Diamondback Energy (NASDAQ:FANG) versus Black Dragon Resource Cos. (OTCMKTS:BDGR)

Diamondback Energy (NASDAQ:FANG) and Black Dragon Resource Cos. (OTCMKTS:BDGR) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current ratings for Diamondback Energy and Black Dragon Resource Cos., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamondback Energy	0	2	19	1	2.95
Black Dragon Resource Cos.	0	0	0	0	0.00

Diamondback Energy currently has a consensus target price of $185.90, suggesting a potential upside of 17.19%. Given Diamondback Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Diamondback Energy is more favorable than Black Dragon Resource Cos..

Earnings & Valuation

This table compares Diamondback Energy and Black Dragon Resource Cos.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamondback Energy	$11.07 billion	4.11	$3.34 billion	$14.39	11.02
Black Dragon Resource Cos.	N/A	N/A	N/A	N/A	N/A

Diamondback Energy has higher revenue and earnings than Black Dragon Resource Cos..

Profitability

This table compares Diamondback Energy and Black Dragon Resource Cos.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diamondback Energy	27.32%	9.57%	5.70%
Black Dragon Resource Cos.	N/A	N/A	N/A

Risk & Volatility

Diamondback Energy has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Black Dragon Resource Cos. has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Institutional and Insider Ownership

90.0% of Diamondback Energy shares are held by institutional investors. 0.5% of Diamondback Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Diamondback Energy beats Black Dragon Resource Cos. on 11 of the 11 factors compared between the two stocks.

About Diamondback Energy

Diamondback Energy, Inc., an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. It focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico. The company also owns and operates midstream infrastructure assets, in the Midland and Delaware Basins of the Permian Basin. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.

About Black Dragon Resource Cos.

Black Dragon Resource Companies, Inc. operates as a distributor of rare art via blockchain-based technologies or non-fungible tokens. The company was formerly known as Black Dragon Resource, Inc. and changed its name to Black Dragon Resource Companies, Inc. in December 2004. Black Dragon Resource Companies, Inc. was incorporated in 1998 and is headquartered in Cheyenne, Wyoming. Black Dragon Resource Companies, Inc. operates as a subsidiary of ProTek Capital, Inc.