Comprehensive Stock Comparison
Compare Magnolia Oil & Gas Corporation (MGY) vs Diamondback Energy, Inc. (FANG) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | FANG | 36.3% revenue growth vs MGY's 7.2% |
| Value | MGY | Lower P/E (17.0x vs 17.6x) |
| Quality / Margins | MGY | 24.8% net margin vs FANG's 11.1% |
| Stability / Safety | FANG | Beta 1.14 vs MGY's 1.15 |
| Dividends | FANG | 2.3% yield, vs MGY's 1.9% |
| Momentum (1Y) | MGY | +21.5% vs FANG's +12.0% |
| Efficiency (ROA) | MGY | 11.2% ROA vs FANG's 2.3%, ROIC 19.2% vs 6.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Magnolia Oil & Gas is an independent exploration and production company focused on acquiring and developing oil and natural gas reserves in South Texas. It generates revenue primarily from oil sales (roughly 60% of total), natural gas liquids (25%), and natural gas (15%), with production concentrated in the Eagle Ford Shale and Austin Chalk formations. The company's competitive advantage lies in its low-cost, high-margin acreage position in the prolific Karnes County and Giddings Field areas, which allows for efficient development and strong returns even in volatile commodity price environments.
Diamondback Energy is an independent oil and natural gas company focused on unconventional resource development in the Permian Basin. It generates revenue primarily from crude oil production — roughly 70% of total revenue — with natural gas and natural gas liquids making up the remainder. The company's competitive advantage lies in its large, contiguous acreage position in the Permian's most productive formations, which enables efficient, low-cost development through scale and operational expertise.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
MGY leads in 3 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 3 categories are tied.
Financial Metrics (TTM)
FANG is the larger business by revenue, generating $15.0B annually — 11.4x MGY's $1.3B. MGY is the more profitable business, keeping 24.8% of every revenue dollar as net income compared to FANG's 11.1%. On growth, MGY holds the edge at -2.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | MGYMagnolia Oil & Ga… | FANGDiamondback Energ… |
|---|---|---|
| RevenueTrailing 12 months | $1.3B | $15.0B |
| EBITDAEarnings before interest/tax | $877M | $10.0B |
| Net IncomeAfter-tax profit | $325M | $1.7B |
| Free Cash FlowCash after capex | $393M | $1.4B |
| Gross MarginGross profit ÷ Revenue | +36.9% | +35.1% |
| Operating MarginEBIT ÷ Revenue | +33.5% | +32.8% |
| Net MarginNet income ÷ Revenue | +24.8% | +11.1% |
| FCF MarginFCF ÷ Revenue | +30.0% | +9.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | -2.8% | -8.7% |
| EPS Growth (YoY)Latest quarter vs prior year | -15.9% | -2.4% |
Valuation Metrics
At 14.3x trailing earnings, MGY trades at a 53% valuation discount to FANG's 30.4x P/E. On an enterprise value basis, MGY's 0.3x EV/EBITDA is more attractive than FANG's 6.4x.
| Metric | MGYMagnolia Oil & Ga… | FANGDiamondback Energ… |
|---|---|---|
| Market CapShares × price | $153M | $49.5B |
| Enterprise ValueMkt cap + debt − cash | $303M | $63.9B |
| Trailing P/EPrice ÷ TTM EPS | 14.34x | 30.38x |
| Forward P/EPrice ÷ next-FY EPS est. | 17.04x | 17.60x |
| PEG RatioP/E ÷ EPS growth rate | 0.30x | — |
| EV / EBITDAEnterprise value multiple | 0.33x | 6.42x |
| Price / SalesMarket cap ÷ Revenue | 0.12x | 3.30x |
| Price / BookPrice ÷ Book value/share | 2.64x | 1.17x |
| Price / FCFMarket cap ÷ FCF | 0.35x | 9.46x |
Profitability & Efficiency
MGY delivers a 5.5% return on equity — every $100 of shareholder capital generates $5 in annual profit, vs $4 for FANG. MGY carries lower financial leverage with a 0.21x debt-to-equity ratio, signaling a more conservative balance sheet compared to FANG's 0.34x. On the Piotroski fundamental quality scale (0–9), MGY scores 5/9 vs FANG's 4/9, reflecting solid financial health.
| Metric | MGYMagnolia Oil & Ga… | FANGDiamondback Energ… |
|---|---|---|
| ROE (TTM)Return on equity | +5.5% | +3.9% |
| ROA (TTM)Return on assets | +11.2% | +2.3% |
| ROICReturn on invested capital | +19.2% | +6.7% |
| ROCEReturn on capital employed | +20.6% | +7.6% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.21x | 0.34x |
| Net DebtTotal debt minus cash | $150M | $14.4B |
| Cash & Equiv.Liquid assets | $260M | $106M |
| Total DebtShort + long-term debt | $410M | $14.5B |
| Interest CoverageEBIT ÷ Interest expense | 31.93x | 8.68x |
Total Returns (with DRIP)
A $10,000 investment in FANG five years ago would be worth $27,840 today (with dividends reinvested), compared to $24,913 for MGY. Over the past 12 months, MGY leads with a +21.5% total return vs FANG's +12.0%. The 3-year compound annual growth rate (CAGR) favors FANG at 11.4% vs MGY's 10.5% — a key indicator of consistent wealth creation.
| Metric | MGYMagnolia Oil & Ga… | FANGDiamondback Energ… |
|---|---|---|
| YTD ReturnYear-to-date | +24.5% | +14.3% |
| 1-Year ReturnPast 12 months | +21.5% | +12.0% |
| 3-Year ReturnCumulative with dividends | +34.8% | +38.3% |
| 5-Year ReturnCumulative with dividends | +149.1% | +178.4% |
| 10-Year ReturnCumulative with dividends | +200.5% | +191.4% |
| CAGR (3Y)Annualised 3-year return | +10.5% | +11.4% |
Risk & Volatility
FANG is the less volatile stock with a 1.14 beta — it tends to amplify market swings less than MGY's 1.15 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | MGYMagnolia Oil & Ga… | FANGDiamondback Energ… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.15x | 1.14x |
| 52-Week HighHighest price in past year | $27.95 | $177.25 |
| 52-Week LowLowest price in past year | $19.09 | $114.00 |
| % of 52W HighCurrent price vs 52-week peak | +99.5% | +98.2% |
| RSI (14)Momentum oscillator 0–100 | 64.6 | 52.7 |
| Avg Volume (50D)Average daily shares traded | 2.4M | 1.6M |
Analyst Outlook
Wall Street rates MGY as "Buy" and FANG as "Buy". Consensus price targets imply 5.7% upside for FANG (target: $184) vs -0.7% for MGY (target: $28). For income investors, FANG offers the higher dividend yield at 2.30% vs MGY's 1.88%.
| Metric | MGYMagnolia Oil & Ga… | FANGDiamondback Energ… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $27.63 | $184.08 |
| # AnalystsCovering analysts | 25 | 51 |
| Dividend YieldAnnual dividend ÷ price | +1.9% | +2.3% |
| Dividend StreakConsecutive years of raises | 4 | 0 |
| Dividend / ShareAnnual DPS | $0.52 | $4.00 |
| Buyback YieldShare repurchases ÷ mkt cap | +100.0% | +4.1% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Magnolia Oil & Gas … (MGY) | 100 | 325.92 | +225.9% |
| Diamondback Energy,… (FANG) | 100 | 255.29 | +155.3% |
Diamondback Energy,… (FANG) returned +178% over 5 years vs Magnolia Oil & Gas … (MGY)'s +149%. A $10,000 investment in FANG 5 years ago would be worth $27,840 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Magnolia Oil & Gas … (MGY) | $111M | $1.3B | +1086.3% |
| Diamondback Energy,… (FANG) | $527M | $15.0B | +2750.7% |
Diamondback Energy, Inc.'s revenue grew from $527M (2016) to $15.0B (2025) — a 45.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Magnolia Oil & Gas … (MGY) | 19.4% | 27.8% | +43.7% |
| Diamondback Energy,… (FANG) | -31.3% | 11.1% | +135.4% |
Diamondback Energy, Inc.'s net margin went from -31% (2016) to 11% (2025).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Magnolia Oil & Gas … (MGY) | 4.4 | 12.1 | +175.0% |
| Diamondback Energy,… (FANG) | 25.6 | 26.2 | +2.3% |
Magnolia Oil & Gas Corporation has traded in a 4x–45x P/E range over 7 years; current trailing P/E is ~14x. Diamondback Energy, Inc. has traded in a 6x–64x P/E range over 8 years; current trailing P/E is ~30x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Magnolia Oil & Gas … (MGY) | 0.29 | 1.94 | +569.0% |
| Diamondback Energy,… (FANG) | -2.2 | 5.73 | +360.5% |
Diamondback Energy, Inc.'s EPS grew from $-2.20 (2016) to $5.73 (2025).
Chart 6Free Cash Flow — 5 Years
Magnolia Oil & Gas Corporation generated $432M FCF in 2024 (-22% vs 2021). Diamondback Energy, Inc. generated $5B FCF in 2025 (+213% vs 2021).
MGY vs FANG: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is MGY or FANG a better buy right now?
Magnolia Oil & Gas Corporation (MGY) offers the better valuation at 14.3x trailing P/E (17.0x forward), making it the more compelling value choice. Analysts rate Magnolia Oil & Gas Corporation (MGY) a "Buy" — based on 25 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — MGY or FANG?
On trailing P/E, Magnolia Oil & Gas Corporation (MGY) is the cheapest at 14.3x versus Diamondback Energy, Inc. at 30.4x. On forward P/E, Magnolia Oil & Gas Corporation is actually cheaper at 17.0x.
03Which is the better long-term investment — MGY or FANG?
Over the past 5 years, Diamondback Energy, Inc. (FANG) delivered a total return of +178.4%, compared to +149.1% for Magnolia Oil & Gas Corporation (MGY). A $10,000 investment in FANG five years ago would be worth approximately $28K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MGY returned +200.5% versus FANG's +191.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — MGY or FANG?
By beta (market sensitivity over 5 years), Diamondback Energy, Inc. (FANG) is the lower-risk stock at 1.14β versus Magnolia Oil & Gas Corporation's 1.15β — meaning MGY is approximately 1% more volatile than FANG relative to the S&P 500. On balance sheet safety, Magnolia Oil & Gas Corporation (MGY) carries a lower debt/equity ratio of 21% versus 34% for Diamondback Energy, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — MGY or FANG?
Magnolia Oil & Gas Corporation (MGY) is the more profitable company, earning 27.8% net margin versus 11.1% for Diamondback Energy, Inc. — meaning it keeps 27.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MGY leads at 38.9% versus 32.7% for FANG. At the gross margin level — before operating expenses — MGY leads at 51.7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is MGY or FANG more undervalued right now?
On forward earnings alone, Magnolia Oil & Gas Corporation (MGY) trades at 17.0x forward P/E versus 17.6x for Diamondback Energy, Inc. — 0.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FANG: 5.7% to $184.08.
07Which pays a better dividend — MGY or FANG?
All stocks in this comparison pay dividends. Diamondback Energy, Inc. (FANG) offers the highest yield at 2.3%, versus 1.9% for Magnolia Oil & Gas Corporation (MGY).
08Is MGY or FANG better for a retirement portfolio?
For long-horizon retirement investors, Diamondback Energy, Inc. (FANG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.14), 2.3% yield, +191.4% 10Y return). Both have compounded well over 10 years (FANG: +191.4%, MGY: +200.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between MGY and FANG?
Both stocks operate in the Energy sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: MGY is a small-cap deep-value stock; FANG is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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