Analyzing Northern Oil and Gas (NYSE:NOG) & Diversified Energy (NYSE:DEC)

Northern Oil and Gas (NYSE:NOG) and Diversified Energy (NYSE:DEC) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Valuation & Earnings

This table compares Northern Oil and Gas and Diversified Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Oil and Gas	$2.16 billion	1.76	$922.97 million	$6.17	6.09
Diversified Energy	$749.63 million	0.82	$758.02 million	N/A	N/A

Northern Oil and Gas has higher revenue and earnings than Diversified Energy.

Institutional and Insider Ownership

98.8% of Northern Oil and Gas shares are owned by institutional investors. Comparatively, 26.5% of Diversified Energy shares are owned by institutional investors. 2.8% of Northern Oil and Gas shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Northern Oil and Gas pays an annual dividend of $1.68 per share and has a dividend yield of 4.5%. Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 9.1%. Northern Oil and Gas pays out 27.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Northern Oil and Gas and Diversified Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Oil and Gas	0	2	7	1	2.90
Diversified Energy	0	0	1	0	3.00

Northern Oil and Gas presently has a consensus target price of $48.00, suggesting a potential upside of 27.80%. Diversified Energy has a consensus target price of $20.00, suggesting a potential upside of 56.25%. Given Diversified Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Diversified Energy is more favorable than Northern Oil and Gas.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northern Oil and Gas	27.37%	31.90%	13.23%
Diversified Energy	N/A	N/A	N/A

Summary

Northern Oil and Gas beats Diversified Energy on 10 of the 14 factors compared between the two stocks.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.

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.