Diversified Energy (NYSE:DEC) and Dynagas LNG Partners (NYSE:DLNG) Critical Survey

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

Dividends

Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 8.2%. Dynagas LNG Partners pays an annual dividend of $0.20 per share and has a dividend yield of 5.3%. Diversified Energy pays out 35.9% of its earnings in the form of a dividend. Dynagas LNG Partners pays out 11.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Diversified Energy and Dynagas LNG Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Energy	0	3	7	0	2.70
Dynagas LNG Partners	0	1	0	0	2.00

Diversified Energy presently has a consensus price target of $22.50, indicating a potential upside of 58.85%. Given Diversified Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Diversified Energy is more favorable than Dynagas LNG Partners.

Risk & Volatility

Diversified Energy has a beta of -0.35, meaning that its share price is 135% less volatile than the S&P 500. Comparatively, Dynagas LNG Partners has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Institutional & Insider Ownership

26.5% of Diversified Energy shares are held by institutional investors. 2.9% of Diversified Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Diversified Energy and Dynagas LNG Partners’ 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
Dynagas LNG Partners	42.33%	13.05%	6.74%

Valuation and Earnings

This table compares Diversified Energy and Dynagas LNG Partners”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Energy	$1.83 billion	0.55	$341.11 million	$3.23	4.39
Dynagas LNG Partners	$156.62 million	0.88	$61.60 million	$1.68	2.25

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

Summary

Diversified Energy beats Dynagas LNG Partners on 10 of the 16 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 Dynagas LNG Partners

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry in Greece and internationally. The company owns and operates liquefied natural gas (LNG) carriers. Its fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was incorporated in 2013 and is headquartered in Athens, Greece.