Analyzing Viper Energy (NASDAQ:VNOM) and Lonestar Resources US (OTCMKTS:LONEQ)

Viper Energy (NASDAQ:VNOM) and Lonestar Resources US (OTCMKTS:LONEQ) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Profitability

This table compares Viper Energy and Lonestar Resources US’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viper Energy	-4.87%	2.62%	2.18%
Lonestar Resources US	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for Viper Energy and Lonestar Resources US, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viper Energy	0	2	14	1	2.94
Lonestar Resources US	0	0	0	0	0.00

Viper Energy currently has a consensus price target of $53.33, suggesting a potential upside of 18.20%. Given Viper Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Viper Energy is more favorable than Lonestar Resources US.

Institutional & Insider Ownership

87.7% of Viper Energy shares are owned by institutional investors. 0.2% of Viper Energy shares are owned by insiders. Comparatively, 2.9% of Lonestar Resources US shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Viper Energy and Lonestar Resources US”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viper Energy	$1.40 billion	11.56	-$68.00 million	($0.23)	-196.17
Lonestar Resources US	N/A	N/A	N/A	N/A	N/A

Lonestar Resources US has lower revenue, but higher earnings than Viper Energy.

Summary

Viper Energy beats Lonestar Resources US on 8 of the 10 factors compared between the two stocks.

About Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

About Lonestar Resources US

Lonestar Resources US Inc., an independent oil and gas company, engages in the acquisition, development, and production of unconventional oil, natural gas liquids, and natural gas properties in the United States. It primarily focuses on Eagle Ford Shale properties that cover an area of 53,831 net acres in Texas counties. The company was incorporated in 2015 and is headquartered in Fort Worth, Texas. On September 30, 2020, Lonestar Resources US Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.