Diamondback Energy (NASDAQ:FANG – Get Free Report) and NACCO Industries (NYSE:NC – Get Free Report) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.
Insider and Institutional Ownership
90.0% of Diamondback Energy shares are owned by institutional investors. Comparatively, 49.1% of NACCO Industries shares are owned by institutional investors. 0.6% of Diamondback Energy shares are owned by company insiders. Comparatively, 44.8% of NACCO Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Diamondback Energy has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diamondback Energy | $15.03 billion | 3.44 | $1.66 billion | $5.13 | 36.01 |
| NACCO Industries | $277.20 million | 0.99 | $17.57 million | $2.30 | 15.78 |
Diamondback Energy has higher revenue and earnings than NACCO Industries. NACCO Industries is trading at a lower price-to-earnings ratio than Diamondback Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Diamondback Energy and NACCO Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Diamondback Energy | 8.58% | 10.10% | 6.16% |
| NACCO Industries | 6.21% | 4.00% | 2.60% |
Analyst Recommendations
This is a summary of recent recommendations for Diamondback Energy and NACCO Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diamondback Energy | 0 | 5 | 16 | 4 | 2.96 |
| NACCO Industries | 0 | 1 | 0 | 0 | 2.00 |
Diamondback Energy currently has a consensus price target of $226.33, indicating a potential upside of 22.53%. Given Diamondback Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Diamondback Energy is more favorable than NACCO Industries.
Dividends
Diamondback Energy pays an annual dividend of $4.40 per share and has a dividend yield of 2.4%. NACCO Industries pays an annual dividend of $1.05 per share and has a dividend yield of 2.9%. Diamondback Energy pays out 85.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NACCO Industries pays out 45.7% of its earnings in the form of a dividend. Diamondback Energy has increased its dividend for 7 consecutive years and NACCO Industries has increased its dividend for 1 consecutive years. NACCO Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Diamondback Energy beats NACCO Industries on 14 of the 18 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 NACCO Industries
NACCO Industries, Inc., together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Coal Mining, North American Mining, and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts with power generation companies. Coal is surface mined in North Dakota and Mississippi. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, activated carbon, lithium, and other industrial minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, Virginia, and Nebraska. This segment also offers mining design and consulting services. The Minerals Management segment is involved in the leasing of its royalty and mineral interests to third-party exploration and production companies, and other mining companies, which grants them the rights to explore, develop, mine, produce, market, and sell gas, oil, and coal. NACCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.
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