BKV (NYSE:BKV) & Diversified Energy (NYSE:DEC) Head to Head Comparison

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

Risk & Volatility

Diversified Energy has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, BKV has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Valuation and Earnings

This table compares Diversified Energy and BKV”s gross revenue, earnings per share (EPS) 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	9.63
BKV	$580.98 million	4.29	-$142.87 million	$0.52	49.44

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

Profitability

This table compares Diversified Energy and BKV’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
BKV	5.67%	6.91%	4.59%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Diversified Energy and BKV, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	1	0	5	0	2.67
BKV	0	1	7	1	3.00

Diversified Energy currently has a consensus target price of $21.00, indicating a potential upside of 48.33%. BKV has a consensus target price of $31.14, indicating a potential upside of 21.13%. Given Diversified Energy’s higher probable upside, analysts clearly believe Diversified Energy is more favorable than BKV.

Institutional and Insider Ownership

26.5% of Diversified Energy shares are held by institutional investors. 4.1% of BKV shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

BKV beats Diversified Energy on 9 of the 14 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 BKV

BKV Corporation engages in the acquisition, operation, and development of natural gas and NGL properties. It is also involved in the gathering, processing, and transportation of natural gas. The company was founded in 2015 and is based in Denver, Colorado with additional offices in Tunkhannock, Pennsylvania and Fort Worth, Texas. BKV Corporation, LLC operates as a subsidiary of Banpu North America Corporation.