HighPeak Energy (NASDAQ:HPK) versus Diamondback Energy (NASDAQ:FANG) Head-To-Head Contrast

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

Profitability

This table compares Diamondback Energy and HighPeak Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diamondback Energy	8.58%	10.10%	6.16%
HighPeak Energy	-10.52%	-1.44%	-0.71%

Valuation and Earnings

This table compares Diamondback Energy and HighPeak Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamondback Energy	$16.98 billion	3.29	$1.66 billion	$5.13	38.94
HighPeak Energy	$862.88 million	1.27	$18.96 million	($0.79)	-10.97

Diamondback Energy has higher revenue and earnings than HighPeak Energy. HighPeak Energy is trading at a lower price-to-earnings ratio than Diamondback Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Diamondback Energy and HighPeak Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamondback Energy	0	5	24	2	2.90
HighPeak Energy	1	1	0	0	1.50

Diamondback Energy presently has a consensus price target of $228.43, indicating a potential upside of 14.36%. Given Diamondback Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe Diamondback Energy is more favorable than HighPeak Energy.

Insider and Institutional Ownership

90.0% of Diamondback Energy shares are held by institutional investors. Comparatively, 24.1% of HighPeak Energy shares are held by institutional investors. 0.6% of Diamondback Energy shares are held by company insiders. Comparatively, 5.6% of HighPeak Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Diamondback Energy has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, HighPeak Energy has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Dividends

Diamondback Energy pays an annual dividend of $4.40 per share and has a dividend yield of 2.2%. HighPeak Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.8%. Diamondback Energy pays out 85.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HighPeak Energy pays out -20.3% of its earnings in the form of a dividend. Diamondback Energy has raised its dividend for 7 consecutive years and HighPeak Energy has raised its dividend for 1 consecutive years. Diamondback Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Diamondback Energy beats HighPeak Energy on 16 of the 18 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 HighPeak Energy

HighPeak Energy, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids reserves in the Permian Basin in West Texas and Eastern New Mexico. The company was incorporated in 2019 and is headquartered in Fort Worth, Texas.