Oil & Gas Exploration & Production
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TPL vs FANG
Revenue, margins, valuation, and 5-year total return — side by side.
Oil & Gas Exploration & Production
TPL vs FANG — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Oil & Gas Exploration & Production | Oil & Gas Exploration & Production |
| Market Cap | $28.94B | $54.88B |
| Revenue (TTM) | $839M | $15.19B |
| Net Income (TTM) | $504M | $403M |
| Gross Margin | 74.5% | 41.8% |
| Operating Margin | 74.4% | 22.1% |
| Forward P/E | 43.9x | 10.9x |
| Total Debt | $32M | $14.49B |
| Cash & Equiv. | $145M | $106M |
TPL vs FANG — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Texas Pacific Land … (TPL) | 100 | 214.7 | +114.7% |
| Diamondback Energy,… (FANG) | 100 | 458.2 | +358.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TPL vs FANG
Each card shows where this stock fits in a portfolio — not just who wins on paper.
TPL is the clearest fit if your priority is long-term compounding and sleep-well-at-night.
- 7.8% 10Y total return vs FANG's 168.8%
- Lower volatility, beta 0.31, Low D/E 2.2%, current ratio 4.40x
- 60.0% margin vs FANG's 2.7%
FANG carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 0 yrs, beta 0.09, yield 2.0%
- Rev growth 36.3%, EPS growth -63.1%, 3Y rev CAGR 16.2%
- Beta 0.09, yield 2.0%, current ratio 0.42x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 36.3% revenue growth vs TPL's 13.1% | |
| Value | Lower P/E (10.9x vs 43.9x) | |
| Quality / Margins | 60.0% margin vs FANG's 2.7% | |
| Stability / Safety | Beta 0.09 vs TPL's 0.31 | |
| Dividends | 2.0% yield, vs TPL's 0.5% | |
| Momentum (1Y) | +50.9% vs TPL's -68.4% | |
| Efficiency (ROA) | 32.0% ROA vs FANG's 0.6%, ROIC 42.1% vs 6.7% |
TPL vs FANG — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
TPL vs FANG — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
TPL leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
FANG is the larger business by revenue, generating $15.2B annually — 18.1x TPL's $839M. TPL is the more profitable business, keeping 60.0% of every revenue dollar as net income compared to FANG's 2.7%. On growth, TPL holds the edge at +20.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $839M | $15.2B |
| EBITDAEarnings before interest/tax | $689M | $8.6B |
| Net IncomeAfter-tax profit | $504M | $403M |
| Free Cash FlowCash after capex | $493M | $1.6B |
| Gross MarginGross profit ÷ Revenue | +74.5% | +41.8% |
| Operating MarginEBIT ÷ Revenue | +74.4% | +22.1% |
| Net MarginNet income ÷ Revenue | +60.0% | +2.7% |
| FCF MarginFCF ÷ Revenue | +58.8% | +10.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +20.8% | +5.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +18.5% | -98.3% |
Valuation Metrics
FANG leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 34.0x trailing earnings, FANG trades at a 43% valuation discount to TPL's 60.2x P/E. On an enterprise value basis, FANG's 7.0x EV/EBITDA is more attractive than TPL's 44.0x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $28.9B | $54.9B |
| Enterprise ValueMkt cap + debt − cash | $28.8B | $69.3B |
| Trailing P/EPrice ÷ TTM EPS | 60.22x | 34.05x |
| Forward P/EPrice ÷ next-FY EPS est. | 43.91x | 10.94x |
| PEG RatioP/E ÷ EPS growth rate | 2.67x | — |
| EV / EBITDAEnterprise value multiple | 44.03x | 6.96x |
| Price / SalesMarket cap ÷ Revenue | 36.25x | 3.65x |
| Price / BookPrice ÷ Book value/share | 19.86x | 1.31x |
| Price / FCFMarket cap ÷ FCF | 59.50x | 10.48x |
Profitability & Efficiency
TPL leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
TPL delivers a 35.5% return on equity — every $100 of shareholder capital generates $36 in annual profit, vs $1 for FANG. TPL carries lower financial leverage with a 0.02x debt-to-equity ratio, signaling a more conservative balance sheet compared to FANG's 0.34x. On the Piotroski fundamental quality scale (0–9), TPL scores 5/9 vs FANG's 4/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +35.5% | +0.9% |
| ROA (TTM)Return on assets | +32.0% | +0.6% |
| ROICReturn on invested capital | +42.1% | +6.7% |
| ROCEReturn on capital employed | +43.3% | +7.6% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.02x | 0.34x |
| Net DebtTotal debt minus cash | -$112M | $14.4B |
| Cash & Equiv.Liquid assets | $145M | $106M |
| Total DebtShort + long-term debt | $32M | $14.5B |
| Interest CoverageEBIT ÷ Interest expense | 446.42x | 0.66x |
Total Returns (Dividends Reinvested)
FANG leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in FANG five years ago would be worth $27,567 today (with dividends reinvested), compared to $8,145 for TPL. Over the past 12 months, FANG leads with a +50.9% total return vs TPL's -68.4%. The 3-year compound annual growth rate (CAGR) favors FANG at 17.2% vs TPL's -2.6% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +41.1% | +28.8% |
| 1-Year ReturnPast 12 months | -68.4% | +50.9% |
| 3-Year ReturnCumulative with dividends | -7.5% | +61.0% |
| 5-Year ReturnCumulative with dividends | -18.5% | +175.7% |
| 10-Year ReturnCumulative with dividends | +777.4% | +168.8% |
| CAGR (3Y)Annualised 3-year return | -2.6% | +17.2% |
Risk & Volatility
FANG leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
FANG is the less volatile stock with a 0.09 beta — it tends to amplify market swings less than TPL's 0.31 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. FANG currently trades 91.0% from its 52-week high vs TPL's 29.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.31x | 0.09x |
| 52-Week HighHighest price in past year | $1432.18 | $214.51 |
| 52-Week LowLowest price in past year | $280.95 | $127.75 |
| % of 52W HighCurrent price vs 52-week peak | +29.3% | +91.0% |
| RSI (14)Momentum oscillator 0–100 | 43.3 | 62.7 |
| Avg Volume (50D)Average daily shares traded | 474K | 3.4M |
Analyst Outlook
FANG leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates TPL as "Buy" and FANG as "Buy". Consensus price targets imply 52.2% upside for TPL (target: $639) vs 3.2% for FANG (target: $201). For income investors, FANG offers the higher dividend yield at 2.05% vs TPL's 0.51%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $639.00 | $201.27 |
| # AnalystsCovering analysts | 5 | 51 |
| Dividend YieldAnnual dividend ÷ price | +0.5% | +2.0% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $2.14 | $4.00 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +3.7% |
FANG leads in 4 of 6 categories (Valuation Metrics, Total Returns). TPL leads in 2 (Income & Cash Flow, Profitability & Efficiency).
TPL vs FANG: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TPL or FANG a better buy right now?
For growth investors, Diamondback Energy, Inc.
(FANG) is the stronger pick with 36. 3% revenue growth year-over-year, versus 13. 1% for Texas Pacific Land Corporation (TPL). Diamondback Energy, Inc. (FANG) offers the better valuation at 34. 0x trailing P/E (10. 9x forward), making it the more compelling value choice. Analysts rate Texas Pacific Land Corporation (TPL) a "Buy" — based on 5 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 — TPL or FANG?
On trailing P/E, Diamondback Energy, Inc.
(FANG) is the cheapest at 34. 0x versus Texas Pacific Land Corporation at 60. 2x. On forward P/E, Diamondback Energy, Inc. is actually cheaper at 10. 9x.
03Which is the better long-term investment — TPL or FANG?
Over the past 5 years, Diamondback Energy, Inc.
(FANG) delivered a total return of +175. 7%, compared to -18. 5% for Texas Pacific Land Corporation (TPL). Over 10 years, the gap is even starker: TPL returned +777. 4% versus FANG's +168. 8%. 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 — TPL or FANG?
By beta (market sensitivity over 5 years), Diamondback Energy, Inc.
(FANG) is the lower-risk stock at 0. 09β versus Texas Pacific Land Corporation's 0. 31β — meaning TPL is approximately 244% more volatile than FANG relative to the S&P 500. On balance sheet safety, Texas Pacific Land Corporation (TPL) carries a lower debt/equity ratio of 2% versus 34% for Diamondback Energy, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — TPL or FANG?
By revenue growth (latest reported year), Diamondback Energy, Inc.
(FANG) is pulling ahead at 36. 3% versus 13. 1% for Texas Pacific Land Corporation (TPL). On earnings-per-share growth, the picture is similar: Texas Pacific Land Corporation grew EPS 6. 0% year-over-year, compared to -63. 1% for Diamondback Energy, Inc.. Over a 3-year CAGR, FANG leads at 16. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — TPL or FANG?
Texas Pacific Land Corporation (TPL) is the more profitable company, earning 60.
3% net margin versus 11. 1% for Diamondback Energy, Inc. — meaning it keeps 60. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TPL leads at 74. 2% versus 32. 7% for FANG. At the gross margin level — before operating expenses — TPL leads at 100. 0%, 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.
07Is TPL or FANG more undervalued right now?
On forward earnings alone, Diamondback Energy, Inc.
(FANG) trades at 10. 9x forward P/E versus 43. 9x for Texas Pacific Land Corporation — 33. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TPL: 52. 2% to $639. 00.
08Which pays a better dividend — TPL or FANG?
All stocks in this comparison pay dividends.
Diamondback Energy, Inc. (FANG) offers the highest yield at 2. 0%, versus 0. 5% for Texas Pacific Land Corporation (TPL).
09Is TPL or FANG better for a retirement portfolio?
For long-horizon retirement investors, Texas Pacific Land Corporation (TPL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
31), 0. 5% yield, +777. 4% 10Y return). Both have compounded well over 10 years (TPL: +777. 4%, FANG: +168. 8%), 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.
10What are the main differences between TPL 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: TPL is a mid-cap quality compounder stock; FANG is a mid-cap high-growth 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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