Diversified Energy (NYSE:DEC) versus Obsidian Energy (OTCMKTS:OBELF) Head to Head Comparison

Diversified Energy (NYSE:DEC) and Obsidian Energy (OTCMKTS:OBELF) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$749.63 million	0.74	$758.02 million	N/A	N/A
Obsidian Energy	$220.00 million	2.15	-$576.07 million	$4.17	1.41

Diversified Energy has higher revenue and earnings than Obsidian Energy.

Profitability

This table compares Diversified Energy and Obsidian 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
Obsidian Energy	99.13%	78.07%	35.32%

Institutional and Insider Ownership

26.5% of Diversified Energy shares are owned by institutional investors. Comparatively, 0.0% of Obsidian Energy shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Diversified Energy and Obsidian Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	0	2	0	3.00
Obsidian Energy	0	0	0	0	N/A

Diversified Energy presently has a consensus target price of $18.50, suggesting a potential upside of 61.29%. Given Diversified Energy’s higher possible upside, equities research analysts plainly believe Diversified Energy is more favorable than Obsidian Energy.

Summary

Diversified Energy beats Obsidian Energy on 5 of the 9 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 Obsidian Energy

Obsidian Energy Ltd. is an exploration and production company. The firm engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Its property portfolio includes Cardium, Viking, and Peace River. The company was founded on December 27, 1979 and is headquartered in Calgary, Canada.