Obsidian Energy (OTCMKTS:OBELF) & Diversified Energy (NYSE:DEC) Head to Head Contrast

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

Institutional and Insider Ownership

0.0% of Obsidian Energy shares are held by institutional investors. Comparatively, 26.5% of Diversified Energy shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Obsidian Energy	$220.00 million	2.14	-$576.07 million	$4.17	1.40
Diversified Energy	$749.63 million	0.75	$758.02 million	N/A	N/A

Diversified Energy has higher revenue and earnings than Obsidian Energy.

Analyst Ratings

This is a breakdown of recent recommendations for Obsidian Energy and Diversified Energy, as reported by MarketBeat.

	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 price target of $18.50, suggesting a potential upside of 58.53%. Given Diversified Energy’s higher possible upside, analysts plainly believe Diversified Energy is more favorable than Obsidian Energy.

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.