Contrasting Diversified Energy (NYSE:DEC) & Redeia Corporacion (OTCMKTS:RDEIY)

Redeia Corporacion (OTCMKTS:RDEIY) and Diversified Energy (NYSE:DEC) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Redeia Corporacion and Diversified Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redeia Corporacion	1	4	0	2	2.43
Diversified Energy	1	0	6	0	2.71

Diversified Energy has a consensus target price of $22.20, indicating a potential upside of 54.20%. Given Diversified Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Diversified Energy is more favorable than Redeia Corporacion.

Profitability

This table compares Redeia Corporacion and Diversified Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redeia Corporacion	N/A	N/A	N/A
Diversified Energy	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redeia Corporacion	$1.73 billion	0.56	$398.69 million	N/A	N/A
Diversified Energy	$794.84 million	N/A	-$88.27 million	$1.47	9.79

Redeia Corporacion has higher revenue and earnings than Diversified Energy.

Dividends

Redeia Corporacion pays an annual dividend of $0.43 per share and has a dividend yield of 4.8%. Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 8.1%. 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.

Risk & Volatility

Redeia Corporacion has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Diversified Energy has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Insider and Institutional Ownership

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

About Redeia Corporacion

Redeia Corporación, S.A. engages in the electricity transmission, and system operation and management of the transmission network for the electricity system in Spain and internationally. The company operates through three segments: Management and Operation of National Electricity Infrastructure; Management and Operation of International Electricity Infrastructure; and Telecommunications (Satellites and Fibre Optic). Its transmission network comprises approximately 45,141 kilometres; and has 94,981 MVA of transformation capacity. The company also provides advisory, engineering, and construction services; and telecommunications, financing, reinsurance, line and substation maintenance, technical consultancy, and satellite telecommunications services. In addition, it manages and constructs energy storage facilities and the water cycle; acquires, holds, manages, and administers equity securities; operates satellite communications system and provides space segment services for the geostationary orbital slots; and sells and leases satellites and spatial capacity. The company was formerly known as Red Eléctrica Corporación, S.A. and changed its name to Redeia Corporación, S.A. in June 2023. Redeia Corporación, S.A. was incorporated in 1985 and is based in Alcobendas, Spain.

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.