Financial Comparison: Northern Oil and Gas (NYSE:NOG) & Diversified Energy (NYSE:DEC)

Diversified Energy (NYSE:DEC) and Northern Oil and Gas (NYSE:NOG) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for Diversified Energy and Northern Oil and Gas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	0	1	0	3.00
Northern Oil and Gas	0	2	8	1	2.91

Diversified Energy currently has a consensus price target of $20.00, indicating a potential upside of 49.59%. Northern Oil and Gas has a consensus price target of $48.60, indicating a potential upside of 25.91%. Given Diversified Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe Diversified Energy is more favorable than Northern Oil and Gas.

Dividends

Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 8.7%. Northern Oil and Gas pays an annual dividend of $1.68 per share and has a dividend yield of 4.4%. Northern Oil and Gas pays out 27.2% of its earnings in the form of a dividend.

Profitability

This table compares Diversified Energy and Northern Oil and Gas’ 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
Northern Oil and Gas	27.37%	31.90%	13.23%

Earnings and Valuation

This table compares Diversified Energy and Northern Oil and Gas’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$749.63 million	0.86	$758.02 million	N/A	N/A
Northern Oil and Gas	$2.16 billion	1.81	$922.97 million	$6.17	6.26

Northern Oil and Gas has higher revenue and earnings than Diversified Energy.

Institutional & Insider Ownership

26.5% of Diversified Energy shares are held by institutional investors. Comparatively, 98.8% of Northern Oil and Gas shares are held by institutional investors. 2.8% of Northern Oil and Gas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Northern Oil and Gas beats Diversified Energy on 10 of the 14 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 Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.