Devon Energy Corporation (DVN) vs Diamondback Energy, Inc. (FANG)

Devon Energy Corporation and Diamondback Energy, Inc. are both Oil & Gas E&P companies. Devon Energy Corporation and Diamondback Energy, Inc. are of similar size ($50.2B and $47.2B). Devon Energy Corporation trades at the lower P/E: 10.2× against 22.7×. Diamondback Energy, Inc. grew revenue faster over the last twelve months: 21.1% against 14.6%. Devon Energy Corporation has the higher net margin (16.7% vs 11.0%) and the higher return on invested capital (5.05% vs 2.54%). Both pay a dividend; Devon Energy Corporation yields more (2.60% vs 2.36%). Across the 22 metrics below, Devon Energy Corporation leads on 16 and Diamondback Energy, Inc. on 6.

Valuation

Metric DVN FANG Oil & Gas E&P median
P/E 10.18 22.67 9.67
P/S 2.05 2.71 1.76
P/B 0.97 1.12 1.19
Price to free cash flow 25.10 5.90 8.37
EV/EBITDA 6.11 8.28 4.59
EV/Sales 2.58 3.39 2.27
Earnings yield 9.83% 4.41% 7.55%
Free cash flow yield 3.98% 16.94% 3.98%

Profitability

Metric DVN FANG Oil & Gas E&P median
Gross margin 79.45% 85.54% 79.54%
Operating margin 21.39% 12.61% 24.01%
Net margin 16.67% 11.03% 14.11%
Free cash flow margin 8.17% 45.89% 7.72%
Return on equity 11.50% 4.52% 8.99%
Return on assets 6.41% 2.77% 4.63%
Return on invested capital 5.05% 2.54% 6.33%

Growth

Metric DVN FANG Oil & Gas E&P median
Revenue growth (TTM) 14.64% 21.14% 13.60%
EPS growth (last fiscal year) (8.55%) (63.10%) (10.17%)
Revenue growth, 5-year CAGR 28.91% 39.81% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DVN FANG Oil & Gas E&P median
Debt to equity 0.27 0.29 0.29
Current ratio 0.72 0.55 0.92
Net debt to EBITDA 0.99 2.28 0.93

Dividend

Metric DVN FANG Oil & Gas E&P median
Dividend yield 2.60% 2.36% 3.76%
Payout ratio 0.27 0.53 0.33

Size

Metric DVN FANG Oil & Gas E&P median
Market cap 47.17b 50.15b 953.29m

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