Comparing Diversified Energy (NYSE:DEC) & Murphy Oil (NYSE:MUR)

Diversified Energy (NYSE:DEC) and Murphy Oil (NYSE:MUR) 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

This is a summary of current ratings and target prices for Diversified Energy and Murphy Oil, as reported by MarketBeat.com.

	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.