Reviewing Diversified Energy (NYSE:DEC) and Stabilis Solutions (NASDAQ:SLNG)

Stabilis Solutions (NASDAQ:SLNG) and Diversified Energy (NYSE:DEC) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stabilis Solutions	1.40%	1.53%	1.20%
Diversified Energy	N/A	N/A	N/A

Earnings and Valuation

This table compares Stabilis Solutions 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
Stabilis Solutions	$73.29 million	1.14	$4.60 million	$0.05	90.20
Diversified Energy	$794.84 million	N/A	-$88.27 million	$1.47	8.47

Stabilis Solutions has higher earnings, but lower revenue 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.

Volatility and Risk

Stabilis Solutions has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500. Comparatively, Diversified Energy has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Insider and Institutional Ownership

3.8% of Stabilis Solutions shares are owned by institutional investors. Comparatively, 26.5% of Diversified Energy shares are owned by institutional investors. 72.2% of Stabilis Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Stabilis Solutions and Diversified Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stabilis Solutions	1	0	1	0	2.00
Diversified Energy	1	0	5	0	2.67

Stabilis Solutions currently has a consensus price target of $10.00, suggesting a potential upside of 121.73%. Diversified Energy has a consensus price target of $21.00, suggesting a potential upside of 68.67%. Given Stabilis Solutions’ higher probable upside, equities analysts plainly believe Stabilis Solutions is more favorable than Diversified Energy.

Summary

Stabilis Solutions beats Diversified Energy on 7 of the 13 factors compared between the two stocks.

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.

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.