Diversified Energy (NYSE:DEC) versus Itm Power (OTCMKTS:ITMPF) Head-To-Head Review

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

Institutional and Insider Ownership

26.5% of Diversified 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Itm Power	N/A	N/A	N/A
Diversified Energy	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Itm Power and Diversified Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Itm Power	0	1	0	1	3.00
Diversified Energy	1	0	6	0	2.71

Diversified Energy has a consensus target price of $22.20, indicating a potential upside of 50.20%. Given Diversified Energy’s higher probable upside, analysts clearly believe Diversified Energy is more favorable than Itm Power.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Itm Power	$33.35 million	16.28	-$58.30 million	N/A	N/A
Diversified Energy	$1.20 billion	0.59	-$88.27 million	$1.47	10.05

Itm Power has higher earnings, but lower revenue than Diversified Energy.

Volatility and Risk

Itm Power has a beta of 2.24, suggesting that its share price is 124% more volatile than the S&P 500. Comparatively, Diversified Energy has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Summary

Itm Power beats Diversified Energy on 5 of the 9 factors compared between the two stocks.

About Itm Power

ITM Power Plc designs and manufactures proton exchange membrane (PEM) electrolysers in the United Kingdom, Germany, Australia, rest of Europe, and the United States. Its product portfolio includes TRIDENT, an PEM electrolysers stack technology; NEPTUNE, a 2MW plug and play electrolyser for small to mid-size projects; and POSEIDON, a cutting-edge 20 MW module for large-scale projects. ITM Power Plc was founded in 2001 and is headquartered in Sheffield, the United Kingdom.

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.