Diversified Energy (NYSE:DEC) and Vital Energy (NYSE:VTLE) Head-To-Head Analysis

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

Institutional & Insider Ownership

26.5% of Diversified Energy shares are held by institutional investors. Comparatively, 86.5% of Vital Energy shares are held by institutional investors. 1.2% of Vital Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Diversified Energy and Vital Energy’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
Vital Energy	25.09%	9.05%	4.65%

Analyst Ratings

This is a summary of current ratings and recommmendations for Diversified Energy and Vital Energy, as reported by MarketBeat.

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

Diversified Energy presently has a consensus target price of $22.50, suggesting a potential upside of 31.58%. Vital Energy has a consensus target price of $46.00, suggesting a potential upside of 36.50%. Given Vital Energy’s higher probable upside, analysts plainly believe Vital Energy is more favorable than Diversified Energy.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$749.63 million	1.10	$758.02 million	N/A	N/A
Vital Energy	$1.86 billion	0.69	$695.08 million	$14.28	2.36

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

Summary

Vital Energy beats Diversified Energy on 8 of the 11 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 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.