Head to Head Survey: Diversified Energy (DEC) vs. Its Peers

Diversified Energy (NYSE:DEC) is one of 75 public companies in the “Other Alt Energy” industry, but how does it weigh in compared to its peers? We will compare Diversified Energy to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, valuation, risk and earnings.

Insider & Institutional Ownership

26.5% of Diversified Energy shares are held by institutional investors. Comparatively, 40.6% of shares of all “Other Alt Energy” companies are held by institutional investors. 17.1% of shares of all “Other Alt Energy” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Diversified Energy pays an annual dividend of $0.81 per share and has a dividend yield of 5.8%. Diversified Energy pays out 55.1% of its earnings in the form of a dividend. As a group, “Other Alt Energy” companies pay a dividend yield of 1.0% and pay out 50.1% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Diversified Energy and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	1	0	4	0	2.60
Diversified Energy Competitors	427	1186	1837	80	2.44

Diversified Energy presently has a consensus target price of $21.50, suggesting a potential upside of 55.03%. As a group, “Other Alt Energy” companies have a potential upside of 9.04%. Given Diversified Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Diversified Energy is more favorable than its peers.

Volatility and Risk

Diversified Energy has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Diversified Energy’s peers have a beta of -76.01, suggesting that their average share price is 7,701% less volatile than the S&P 500.

Profitability

This table compares Diversified Energy and its peers’ 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
Diversified Energy Competitors	-28.63%	-21.53%	-3.91%

Earnings & Valuation

This table compares Diversified Energy and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Diversified Energy	$794.84 million	-$88.27 million	9.43
Diversified Energy Competitors	$18.65 billion	$321.02 million	-7.16

Diversified Energy’s peers have higher revenue and earnings than Diversified Energy. Diversified Energy is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Diversified Energy beats its peers on 9 of the 15 factors compared.

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.