Contrasting Obsidian Energy (OTCMKTS:OBELF) and Diversified Energy (NYSE:DEC)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Obsidian Energy and Diversified Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Obsidian Energy	0	0	0	0	N/A
Diversified Energy	0	0	2	0	3.00

Diversified Energy has a consensus target price of $18.50, indicating a potential upside of 57.25%. Given Diversified Energy’s higher probable upside, analysts clearly believe Diversified Energy is more favorable than Obsidian Energy.

Earnings & Valuation

This table compares Obsidian Energy and Diversified Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Obsidian Energy	$220.00 million	2.25	-$576.07 million	$4.17	1.47
Diversified Energy	$749.63 million	0.76	$758.02 million	N/A	N/A

Diversified Energy has higher revenue and earnings than Obsidian Energy.

Institutional & Insider Ownership

0.0% of Obsidian Energy shares are owned by institutional investors. Comparatively, 26.5% of Diversified Energy shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Obsidian Energy	99.13%	78.07%	35.32%
Diversified Energy	N/A	N/A	N/A

Summary

Diversified Energy beats Obsidian Energy on 5 of the 9 factors compared between the two stocks.

About Obsidian Energy

Obsidian Energy Ltd. is an exploration and production company. The firm engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Its property portfolio includes Cardium, Viking, and Peace River. The company was founded on December 27, 1979 and is headquartered in Calgary, Canada.

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.