Whiting USA Trust II (OTCMKTS:WHZT) versus Diamondback Energy (NASDAQ:FANG) Critical Contrast

Whiting USA Trust II (OTCMKTS:WHZT) and Diamondback Energy (NASDAQ:FANG) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Volatility and Risk

Whiting USA Trust II has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.

Institutional & Insider Ownership

90.0% of Diamondback Energy shares are held by institutional investors. 0.5% of Diamondback Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Whiting USA Trust II and Diamondback Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Whiting USA Trust II	0	0	0	0	N/A
Diamondback Energy	1	5	14	1	2.71

Diamondback Energy has a consensus target price of $211.45, indicating a potential upside of 17.65%. Given Diamondback Energy’s higher probable upside, analysts clearly believe Diamondback Energy is more favorable than Whiting USA Trust II.

Dividends

Whiting USA Trust II pays an annual dividend of $0.65 per share and has a dividend yield of 405.2%. Diamondback Energy pays an annual dividend of $3.60 per share and has a dividend yield of 2.0%. Diamondback Energy pays out 20.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Whiting USA Trust II and Diamondback Energy’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Whiting USA Trust II	$30.93 million	0.10	$270,000.00	N/A	N/A
Diamondback Energy	$9.28 billion	3.45	$3.14 billion	$17.74	10.13

Diamondback Energy has higher revenue and earnings than Whiting USA Trust II.

Profitability

This table compares Whiting USA Trust II and Diamondback Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Whiting USA Trust II	N/A	1,607.92%	588.52%
Diamondback Energy	37.51%	19.54%	11.33%

Summary

Diamondback Energy beats Whiting USA Trust II on 10 of the 14 factors compared between the two stocks.

About Whiting USA Trust II

Whiting USA Trust II is a statutory trust. The company was founded on December 5, 2011 and is headquartered in Houston, TX.

About Diamondback Energy

Diamondback Energy, Inc., an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. It focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico. The company also owns and operates midstream infrastructure assets, in the Midland and Delaware Basins of the Permian Basin. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.