Reviewing Diversified Energy (NYSE:DEC) & Verde Clean Fuels (NASDAQ:VGAS)

Diversified Energy (NYSE:DEC) and Verde Clean Fuels (NASDAQ:VGAS) are both small-cap 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 Diversified Energy and Verde Clean Fuels’ 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
Verde Clean Fuels	N/A	-11.33%	-10.89%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$1.83 billion	0.55	$341.11 million	$3.52	3.97
Verde Clean Fuels	N/A	N/A	-$6.96 million	($0.35)	-2.97

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

Volatility and Risk

Diversified Energy has a beta of -0.4, suggesting that its share price is 140% less volatile than the S&P 500. Comparatively, Verde Clean Fuels has a beta of -0.31, suggesting that its share price is 131% less volatile than the S&P 500.

Insider and Institutional Ownership

26.5% of Diversified Energy shares are owned by institutional investors. Comparatively, 15.6% of Verde Clean Fuels shares are owned by institutional investors. 2.9% of Diversified Energy shares are owned by insiders. Comparatively, 4.3% of Verde Clean Fuels 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 Diversified Energy and Verde Clean Fuels, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	1	7	1	3.00
Verde Clean Fuels	1	0	0	0	1.00

Diversified Energy currently has a consensus price target of $21.83, suggesting a potential upside of 56.39%. Given Diversified Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Diversified Energy is more favorable than Verde Clean Fuels.

Summary

Diversified Energy beats Verde Clean Fuels on 11 of the 13 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 Verde Clean Fuels

Verde Clean Fuels, Inc., operates as a clean energy technology company in the United States. It specializes in the conversion of synthesis gas, or syngas, derived from feedstocks, such as biomass, natural gas, and other feedstocks into liquid hydrocarbons that can be used as gasoline through proprietary liquid fuels technology. Verde Clean Fuels, Inc. was founded in 2007 and is headquartered in Houston, Texas.