Diversified Energy (NYSE:DEC – Get Free Report) and Murphy Oil (NYSE:MUR – Get Free Report) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.
Profitability
This table compares Diversified Energy and Murphy Oil’s 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 |
Murphy Oil | 17.32% | 11.68% | 6.56% |
Dividends
Diversified Energy pays an annual dividend of $0.81 per share and has a dividend yield of 6.9%. Murphy Oil pays an annual dividend of $1.20 per share and has a dividend yield of 3.3%. Murphy Oil pays out 33.4% of its earnings in the form of a dividend.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Diversified Energy | 0 | 0 | 2 | 0 | 3.00 |
Murphy Oil | 0 | 7 | 5 | 0 | 2.42 |
Diversified Energy currently has a consensus target price of $19.00, suggesting a potential upside of 62.88%. Murphy Oil has a consensus target price of $45.00, suggesting a potential upside of 24.93%. Given Diversified Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Diversified Energy is more favorable than Murphy Oil.
Institutional & Insider Ownership
26.5% of Diversified Energy shares are owned by institutional investors. Comparatively, 78.3% of Murphy Oil shares are owned by institutional investors. 5.9% of Murphy Oil shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Diversified Energy and Murphy Oil”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Diversified Energy | $749.63 million | 0.75 | $758.02 million | N/A | N/A |
Murphy Oil | $3.39 billion | 1.62 | $661.56 million | $3.59 | 10.03 |
Diversified Energy has higher earnings, but lower revenue than Murphy Oil.
Summary
Murphy Oil beats Diversified Energy on 8 of the 13 factors compared between the two stocks.
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.
About Murphy Oil
Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.
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