Comparing Pacific Coast Oil Trust (OTCMKTS:ROYTL) & Diamondback Energy (NASDAQ:FANG)

Diamondback Energy (NASDAQ:FANG) and Pacific Coast Oil Trust (OTCMKTS:ROYTL) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Institutional & Insider Ownership

90.0% of Diamondback Energy shares are held by institutional investors. 0.7% of Diamondback Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Diamondback Energy and Pacific Coast Oil Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diamondback Energy	33.64%	13.68%	7.93%
Pacific Coast Oil Trust	N/A	N/A	N/A

Earnings and Valuation

This table compares Diamondback Energy and Pacific Coast Oil Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamondback Energy	$12.84 billion	3.20	$3.14 billion	$16.35	8.60
Pacific Coast Oil Trust	N/A	N/A	N/A	N/A	N/A

Diamondback Energy has higher revenue and earnings than Pacific Coast Oil Trust.

Volatility and Risk

Diamondback Energy has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Pacific Coast Oil Trust has a beta of -0.08, meaning that its share price is 108% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Diamondback Energy and Pacific Coast Oil Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamondback Energy	0	1	19	2	3.05
Pacific Coast Oil Trust	0	0	0	0	0.00

Diamondback Energy presently has a consensus price target of $193.09, suggesting a potential upside of 37.37%. Given Diamondback Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Diamondback Energy is more favorable than Pacific Coast Oil Trust.

Summary

Diamondback Energy beats Pacific Coast Oil Trust on 11 of the 11 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 Pacific Coast Oil Trust

Pacific Coast Oil Trust acquires and holds net profits and royalty interests in various oil and natural gas properties located in California. Its properties include Orcutt properties located in the Santa Maria Basin; and West Pico, East Coyote, and Sawtelle properties located in the Los Angeles Basin of California. Pacific Coast Oil Trust was founded in 2012 and is based in Houston, Texas.