Diversified Energy (NYSE:DEC – Get Free Report) and Stabilis Solutions (NASDAQ:SLNG – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
Volatility and Risk
Diversified Energy has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Stabilis Solutions has a beta of -0.04, indicating that its stock price is 104% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Diversified Energy and Stabilis Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diversified Energy | 2 | 0 | 5 | 0 | 2.43 |
| Stabilis Solutions | 1 | 0 | 1 | 0 | 2.00 |
Valuation & Earnings
This table compares Diversified Energy and Stabilis Solutions”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diversified Energy | $794.84 million | N/A | -$88.27 million | $1.47 | 8.72 |
| Stabilis Solutions | $73.29 million | 1.18 | $4.60 million | $0.05 | 93.12 |
Stabilis Solutions has lower revenue, but higher earnings than Diversified Energy. Diversified Energy is trading at a lower price-to-earnings ratio than Stabilis Solutions, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
26.5% of Diversified Energy shares are owned by institutional investors. Comparatively, 3.8% of Stabilis Solutions shares are owned by institutional investors. 72.2% of Stabilis Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Diversified Energy and Stabilis Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Diversified Energy | N/A | N/A | N/A |
| Stabilis Solutions | 1.40% | 1.53% | 1.20% |
Summary
Stabilis Solutions beats Diversified Energy on 7 of the 13 factors compared between the two stocks.
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.
About Stabilis Solutions
Stabilis Solutions, Inc., together with its subsidiaries, an energy transition company, provides clean energy production, storage, transportation, and fueling solutions primarily using liquefied natural gas (LNG) to various end markets in North America. The company offers LNG solutions to customers in aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power, and utility markets. It also provides engineering and field support services, as well as rents cryogenic equipment. The company was founded in 2013 and is headquartered in Houston, Texas. Stabilis Solutions, Inc. is a subsidiary of LNG Investment Company LLC.
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