Financial Analysis: Comstock Resources (NYSE:CRK) versus Viper Energy (NASDAQ:VNOM)

Comstock Resources (NYSE:CRKGet Free Report) and Viper Energy (NASDAQ:VNOMGet Free Report) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

36.1% of Comstock Resources shares are owned by institutional investors. Comparatively, 87.7% of Viper Energy shares are owned by institutional investors. 1.5% of Comstock Resources shares are owned by insiders. Comparatively, 0.3% of Viper Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Comstock Resources and Viper Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comstock Resources 3 7 1 0 1.82
Viper Energy 0 0 7 0 3.00

Comstock Resources presently has a consensus price target of $9.75, suggesting a potential downside of 14.74%. Viper Energy has a consensus price target of $45.71, suggesting a potential downside of 3.58%. Given Viper Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Viper Energy is more favorable than Comstock Resources.

Dividends

Comstock Resources pays an annual dividend of $0.50 per share and has a dividend yield of 4.4%. Viper Energy pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. Comstock Resources pays out 227.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Viper Energy pays out 44.1% of its earnings in the form of a dividend.

Profitability

This table compares Comstock Resources and Viper Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comstock Resources -1.48% -1.38% -0.53%
Viper Energy 25.63% 8.46% 6.20%

Valuation & Earnings

This table compares Comstock Resources and Viper Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Comstock Resources $1.37 billion 2.44 $211.12 million $0.22 51.98
Viper Energy $827.70 million 10.13 $200.09 million $2.72 17.43

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

Volatility and Risk

Comstock Resources has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Viper Energy has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Summary

Viper Energy beats Comstock Resources on 11 of the 16 factors compared between the two stocks.

About Comstock Resources

(Get Free Report)

Comstock Resources, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. Its assets are located in the Haynesville and Bossier shales located in North Louisiana and East Texas. The company was incorporated in 1919 and is headquartered in Frisco, Texas.

About Viper Energy

(Get Free Report)

Viper Energy, Inc. owns and acquires mineral and royalty interests in oil and natural gas properties in the Permian Basin, North America. Viper Energy Partners GP LLC operates as the general partner of the company. The company was formerly known as Viper Energy Partners LP and changed its name to Viper Energy, Inc. in November 2023. The company was founded in 2013 and is based in Midland, Texas. Viper Energy, Inc. is a subsidiary of Diamondback Energy, Inc.

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