Head to Head Comparison: Meren Energy (OTCMKTS:AOIFF) & Diversified Energy (NYSE:DEC)

Diversified Energy (NYSE:DEC) and Meren Energy (OTCMKTS:AOIFF) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Volatility and Risk

Diversified Energy has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Meren Energy has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares Diversified Energy and Meren 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
Meren Energy	N/A	3.52%	1.68%

Earnings and Valuation

This table compares Diversified Energy and Meren Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$794.84 million	N/A	-$88.27 million	$1.47	9.34
Meren Energy	N/A	N/A	-$279.10 million	($0.52)	-2.43

Diversified Energy has higher revenue and earnings than Meren Energy. Meren 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.

Insider and Institutional Ownership

26.5% of Diversified Energy shares are owned by institutional investors. 1.0% of Meren Energy shares are owned 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.

Dividends

Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 8.4%. Meren Energy pays an annual dividend of $0.14 per share and has a dividend yield of 11.1%. Diversified Energy pays out 78.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Meren Energy pays out -26.9% of its earnings in the form of a dividend. Meren Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	1	0	6	0	2.71
Meren Energy	0	0	0	1	4.00

Diversified Energy presently has a consensus price target of $22.20, indicating a potential upside of 61.69%. Given Diversified Energy’s higher probable upside, equities analysts plainly believe Diversified Energy is more favorable than Meren Energy.

Summary

Meren Energy beats Diversified Energy on 8 of the 15 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 Meren Energy

Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and production company in Kenya, Nigeria, and South Africa. The company holds interests in producing and development assets in deep-water Nigeria, and development assets in Kenya. It also has a portfolio of exploration and appraisal assets in Namibia, Nigeria, South Africa, and Kenya, as well as Guyana and Senegal Guinea Bissau Joint Development Zone. The company was formerly known as Canmex Minerals Corporation and changed its name to Africa Oil Corp. in August 2007. Africa Oil Corp. was incorporated in 1983 and is headquartered in Vancouver, Canada.