Viper Energy (NASDAQ:VNOM) vs. Carbon Energy (OTCMKTS:CRBO) Critical Analysis

Viper Energy (NASDAQ:VNOM) and Carbon Energy (OTCMKTS:CRBO) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

Viper Energy has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Carbon Energy has a beta of -1.88, meaning that its share price is 288% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Viper Energy and Carbon Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viper Energy	0	2	13	1	2.94
Carbon Energy	0	0	0	0	0.00

Viper Energy presently has a consensus price target of $58.38, indicating a potential upside of 34.06%. Given Viper Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Viper Energy is more favorable than Carbon Energy.

Earnings & Valuation

This table compares Viper Energy and Carbon Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viper Energy	$1.40 billion	11.21	-$68.00 million	($0.32)	-136.09
Carbon Energy	N/A	N/A	N/A	N/A	N/A

Carbon Energy has lower revenue, but higher earnings than Viper Energy.

Profitability

This table compares Viper Energy and Carbon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viper Energy	-2.77%	2.64%	2.21%
Carbon Energy	N/A	N/A	N/A

Insider and Institutional Ownership

87.7% of Viper Energy shares are held by institutional investors. 0.2% of Viper Energy shares are held by insiders. Comparatively, 7.1% of Carbon Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Viper Energy beats Carbon Energy on 9 of the 11 factors compared between the two stocks.

About Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

About Carbon Energy

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. It owns working interests and royalty interests in wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.