Head to Head Review: Advantage Energy (OTCMKTS:AAVVF) and Diversified Energy (NYSE:DEC)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Diversified Energy and Advantage Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	0	1	0	3.00
Advantage Energy	0	1	1	0	2.50

Diversified Energy presently has a consensus price target of $18.00, suggesting a potential upside of 14.29%. Advantage Energy has a consensus price target of $11.00, suggesting a potential upside of 48.85%. Given Advantage Energy’s higher possible upside, analysts clearly believe Advantage Energy is more favorable than Diversified Energy.

Institutional & Insider Ownership

26.5% of Diversified Energy shares are owned by institutional investors. Comparatively, 7.9% of Advantage Energy shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Diversified Energy and Advantage Energy’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$868.26 million	0.87	$758.02 million	N/A	N/A
Advantage Energy	$400.81 million	3.08	$75.26 million	$0.42	17.60

Diversified Energy has higher revenue and earnings than Advantage Energy.

Profitability

This table compares Diversified Energy and Advantage Energy’s 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
Advantage Energy	18.36%	6.10%	4.14%

Summary

Advantage Energy beats Diversified Energy on 5 of the 9 factors compared between the two stocks.

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.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.