Analyzing Diversified Energy (NYSE:DEC) & Dynagas LNG Partners (NYSE:DLNG)

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

Risk & Volatility

Dynagas LNG Partners has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Diversified Energy has a beta of -0.35, suggesting that its share price is 135% less volatile than the S&P 500.

Earnings & Valuation

This table compares Dynagas LNG Partners and Diversified Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynagas LNG Partners	$156.62 million	0.88	$61.60 million	$1.68	2.25
Diversified Energy	$1.83 billion	0.55	$341.11 million	$3.23	4.39

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

Dividends

Dynagas LNG Partners pays an annual dividend of $0.20 per share and has a dividend yield of 5.3%. Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 8.2%. Dynagas LNG Partners pays out 11.9% of its earnings in the form of a dividend. Diversified Energy pays out 35.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dynagas LNG Partners	42.33%	13.05%	6.74%
Diversified Energy	N/A	N/A	N/A

Institutional and Insider Ownership

26.5% of Diversified Energy shares are owned by institutional investors. 2.9% of Diversified Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Dynagas LNG Partners and Diversified Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynagas LNG Partners	0	1	0	0	2.00
Diversified Energy	0	3	7	0	2.70

Diversified Energy has a consensus target price of $22.50, suggesting a potential upside of 58.85%. Given Diversified Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Diversified Energy is more favorable than Dynagas LNG Partners.

Summary

Diversified Energy beats Dynagas LNG Partners on 10 of the 16 factors compared between the two stocks.

About Dynagas LNG Partners

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry in Greece and internationally. The company owns and operates liquefied natural gas (LNG) carriers. Its fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was incorporated in 2013 and is headquartered in Athens, Greece.

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.