Analyzing Vital Energy (NYSE:VTLE) & Diversified Energy (NYSE:DEC)

Vital Energy (NYSE:VTLE) and Diversified Energy (NYSE:DEC) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Earnings & Valuation

This table compares Vital Energy and Diversified Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vital Energy	$1.86 billion	0.73	$695.08 million	$14.28	2.50
Diversified Energy	$868.26 million	0.91	$758.02 million	N/A	N/A

Diversified Energy has lower revenue, but higher earnings than Vital Energy.

Profitability

This table compares Vital Energy and Diversified Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vital Energy	25.09%	9.05%	4.65%
Diversified Energy	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Vital Energy and Diversified Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vital Energy	2	6	3	0	2.09
Diversified Energy	0	0	2	0	3.00

Vital Energy presently has a consensus target price of $46.00, indicating a potential upside of 28.85%. Diversified Energy has a consensus target price of $23.00, indicating a potential upside of 40.16%. Given Diversified Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Diversified Energy is more favorable than Vital Energy.

Insider & Institutional Ownership

86.5% of Vital Energy shares are owned by institutional investors. Comparatively, 26.5% of Diversified Energy shares are owned by institutional investors. 1.2% of Vital Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Vital Energy beats Diversified Energy on 7 of the 11 factors compared between the two stocks.

About Vital Energy

Vital Energy, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company was formerly known as Laredo Petroleum, Inc. and changed its name to Vital Energy, Inc. in January 2023. Vital Energy, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.

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.