Critical Survey: Viper Energy (NASDAQ:VNOM) vs. U.S. Energy (NASDAQ:USEG)

U.S. Energy (NASDAQ:USEG) and Viper Energy (NASDAQ:VNOM) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Profitability

This table compares U.S. Energy and Viper Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
U.S. Energy	-145.83%	-74.13%	-41.72%
Viper Energy	24.65%	6.99%	5.06%

Volatility and Risk

U.S. Energy has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Viper Energy has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.

Earnings & Valuation

This table compares U.S. Energy and Viper Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U.S. Energy	$32.32 million	1.20	-$32.36 million	($1.59)	-0.87
Viper Energy	$835.80 million	11.52	$200.09 million	$2.33	23.37

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for U.S. Energy and Viper Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Energy	0	0	0	0	0.00
Viper Energy	0	0	8	0	3.00

Viper Energy has a consensus target price of $51.25, indicating a potential downside of 5.88%. Given Viper Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Viper Energy is more favorable than U.S. Energy.

Insider & Institutional Ownership

3.0% of U.S. Energy shares are owned by institutional investors. Comparatively, 87.7% of Viper Energy shares are owned by institutional investors. 70.9% of U.S. Energy shares are owned by company insiders. Comparatively, 0.3% of Viper Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Viper Energy beats U.S. Energy on 13 of the 14 factors compared between the two stocks.

About U.S. Energy

U.S. Energy Corp., an independent energy company, focuses on the acquisition, exploration, and development of oil and natural gas properties in the United States. It holds interests in various oil and gas properties located in the Rockies region, including Montana, Wyoming, and North Dakota; the Mid-Continent region comprising Oklahoma, Kansas, and North and East Texas; West Texas; South Texas; and the Gulf Coast regions. The company was incorporated in 1966 and is headquartered in Houston, Texas.

About Viper Energy

Viper Energy, Inc. owns and acquires mineral and royalty interests in oil and natural gas properties in the Permian Basin, North America. Viper Energy Partners GP LLC operates as the general partner of the company. The company was formerly known as Viper Energy Partners LP and changed its name to Viper Energy, Inc. in November 2023. The company was founded in 2013 and is based in Midland, Texas. Viper Energy, Inc. is a subsidiary of Diamondback Energy, Inc.