Head-To-Head Survey: Topaz Resources (OTCMKTS:TOPZ) versus Diamondback Energy (NASDAQ:FANG)

Diamondback Energy (NASDAQ:FANG) and Topaz Resources (OTCMKTS:TOPZ) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Institutional and 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, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Diamondback Energy and Topaz Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diamondback Energy	27.32%	9.57%	5.70%
Topaz Resources	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Diamondback Energy and Topaz Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamondback Energy	0	1	20	1	3.00
Topaz Resources	0	0	0	0	0.00

Diamondback Energy presently has a consensus target price of $186.95, indicating a potential upside of 19.05%. Given Diamondback Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Diamondback Energy is more favorable than Topaz Resources.

Valuation and Earnings

This table compares Diamondback Energy and Topaz Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamondback Energy	$15.28 billion	2.94	$3.34 billion	$14.39	10.91
Topaz Resources	N/A	N/A	N/A	N/A	N/A

Diamondback Energy has higher revenue and earnings than Topaz Resources.

Risk & Volatility

Diamondback Energy has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Topaz Resources has a beta of -1.19, indicating that its stock price is 219% less volatile than the S&P 500.

Summary

Diamondback Energy beats Topaz Resources 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 Topaz Resources

Topaz Resources, Inc. operates as an independent oil and gas company. It focuses on production, acquisition, and developmental drilling opportunities within proven producing areas of north, central, and west Texas. The company was formerly known as Kids Germ Defense Corp. and changed its name to Topaz Resources, Inc. in April 2010. Topaz Resources, Inc. was founded in 2009 and is headquartered in Denton, Texas.