Contrasting U.S. Energy (NASDAQ:USEG) and Viper Energy (NASDAQ:VNOM)

Viper Energy (NASDAQ:VNOMGet Free Report) and U.S. Energy (NASDAQ:USEGGet Free Report) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Profitability

This table compares Viper Energy and U.S. Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viper Energy 24.65% 6.99% 5.06%
U.S. Energy -145.83% -74.13% -41.72%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Viper Energy and U.S. Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viper Energy 0 0 8 0 3.00
U.S. Energy 0 0 0 0 0.00

Viper Energy presently has a consensus price target of $51.25, indicating a potential downside of 7.52%. Given Viper Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Viper Energy is more favorable than U.S. Energy.

Earnings and Valuation

This table compares Viper Energy and U.S. Energy”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viper Energy $827.70 million 11.84 $200.09 million $2.33 23.79
U.S. Energy $32.32 million 1.26 -$32.36 million ($1.59) -0.91

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

Risk & Volatility

Viper Energy has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, U.S. Energy has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Insider and Institutional Ownership

87.7% of Viper Energy shares are owned by institutional investors. Comparatively, 3.0% of U.S. Energy shares are owned by institutional investors. 0.3% of Viper Energy shares are owned by company insiders. Comparatively, 70.9% of U.S. Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Viper Energy beats U.S. Energy on 13 of the 14 factors compared between the two stocks.

About Viper Energy

(Get Free Report)

Viper Energy, Inc. owns and acquires mineral and royalty interests in oil and natural gas properties in the Permian Basin, North America. Viper Energy Partners GP LLC operates as the general partner of the company. The company was formerly known as Viper Energy Partners LP and changed its name to Viper Energy, Inc. in November 2023. The company was founded in 2013 and is based in Midland, Texas. Viper Energy, Inc. is a subsidiary of Diamondback Energy, Inc.

About U.S. Energy

(Get Free Report)

U.S. Energy Corp., an independent energy company, focuses on the acquisition, exploration, and development of oil and natural gas properties in the United States. It holds interests in various oil and gas properties located in the Rockies region, including Montana, Wyoming, and North Dakota; the Mid-Continent region comprising Oklahoma, Kansas, and North and East Texas; West Texas; South Texas; and the Gulf Coast regions. The company was incorporated in 1966 and is headquartered in Houston, Texas.

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