Head to Head Review: Diversified Energy (NYSE:DEC) and Brenmiller Energy (NASDAQ:BNRG)

Diversified Energy (NYSE:DEC) and Brenmiller Energy (NASDAQ:BNRG) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Diversified Energy and Brenmiller Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	2	0	5	0	2.43
Brenmiller Energy	1	0	0	0	1.00

Diversified Energy currently has a consensus price target of $20.50, indicating a potential upside of 52.50%. Given Diversified Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Diversified Energy is more favorable than Brenmiller Energy.

Volatility and Risk

Diversified Energy has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Brenmiller Energy has a beta of -1.1, suggesting that its share price is 210% less volatile than the S&P 500.

Valuation & Earnings

This table compares Diversified Energy and Brenmiller Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$1.20 billion	0.54	-$88.27 million	$1.47	9.14
Brenmiller Energy	$620,000.00	2.13	-$6.77 million	($206.44)	-0.01

Brenmiller Energy has lower revenue, but higher earnings than Diversified Energy. Brenmiller Energy is trading at a lower price-to-earnings ratio than Diversified Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Diversified Energy and Brenmiller 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
Brenmiller Energy	N/A	N/A	N/A

Insider & Institutional Ownership

26.5% of Diversified Energy shares are owned by institutional investors. Comparatively, 13.2% of Brenmiller Energy shares are owned by institutional investors. 38.1% of Brenmiller Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Diversified Energy beats Brenmiller Energy on 8 of the 11 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 Brenmiller Energy

Brenmiller Energy Ltd. develops, produces, markets, and sells thermal energy storage (TES) systems based on its proprietary technology that enables renewable integration, increases energy efficiency, and reduces carbon emissions. Its TES system dispatches thermal energy on demand in the form of steam, which can be saturated for industrial use, or in the form of a superheated steam, which can be used to activate steam turbines. It markets its proprietary TES systems under the bGen name. The company was formerly known as Brenmiller Energy Consulting Ltd. and changed its name to Brenmiller Energy Ltd. in 2017. Brenmiller Energy Ltd was incorporated in 2012 and is based in Rosh HaAyin, Israel.