Par Pacific (NYSE:PARR) & Diversified Energy (NYSE:DEC) Financial Comparison

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

Insider & Institutional Ownership

92.2% of Par Pacific shares are held by institutional investors. Comparatively, 26.5% of Diversified Energy shares are held by institutional investors. 4.4% of Par Pacific shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Par Pacific and Diversified Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Par Pacific	5.71%	35.02%	10.73%
Diversified Energy	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Par Pacific and Diversified Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Par Pacific	0	3	3	0	2.50
Diversified Energy	0	0	1	0	3.00

Par Pacific currently has a consensus price target of $35.17, suggesting a potential upside of 39.27%. Diversified Energy has a consensus price target of $20.00, suggesting a potential upside of 31.84%. Given Par Pacific’s higher probable upside, equities analysts clearly believe Par Pacific is more favorable than Diversified Energy.

Earnings and Valuation

This table compares Par Pacific 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
Par Pacific	$8.23 billion	0.18	$728.64 million	$7.99	3.20
Diversified Energy	$868.26 million	0.84	$758.02 million	N/A	N/A

Diversified Energy has lower revenue, but higher earnings than Par Pacific.

Summary

Par Pacific beats Diversified Energy on 8 of the 11 factors compared between the two stocks.

About Par Pacific

Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 and is headquartered in Houston, Texas.

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.