Is Diamondback Energy a Better Buy Than Coterra Energy?
Even as Coterra Energy surged 6.0% during the past Day, its peer Diamondback Energy may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Diamondback Energy (FANG) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Coterra Energy (CTRA) stock, suggesting you may be better off investing in FANG
- FANG’s Last 12 Months revenue growth was 51.8%, vs. CTRA’s 17.1%.
- In addition, its Last 3-Year Average revenue growth came in at 18.3%, ahead of CTRA’s 0.7%.
- FANG leads on profitability over both periods – LTM margin of 37.8% and 3-year average of 50.0%.
A single stock can be risky, but there is a huge value to a broader, diversified approach. Strategic asset allocation and diversification help you stay invested. Did you know investors who panicked out of the S&P in 2020 lost significant upside that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation approach are designed to reduce volatility so you can stay the course.
CTRA develops and produces oil, natural gas, and liquids in the US, focusing on Marcellus Shale’s dry gas window in Pennsylvania with significant proved reserves. FANG develops Spraberry, Wolfcamp, and Bone Spring formations in the Permian Basin with 524,700 acres, over 5,200 producing wells, and royalty interests in 6,455 more wells.
Valuation & Performance Overview
| CTRA | FANG | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 9.6 | 7.7 | FANG |
| Revenue Growth | |||
| Last Quarter | 54.6% | 47.6% | CTRA |
| Last 12 Months | 17.1% | 51.8% | FANG |
| Last 3 Year Average | 0.7% | 18.3% | FANG |
| Operating Margins | |||
| Last 12 Months | 31.0% | 37.8% | FANG |
| Last 3 Year Average | 37.4% | 50.0% | FANG |
| Momentum | |||
| Last 3 Year Return | 1.6% | -1.4% | CTRA |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: CTRA Revenue Comparison | FANG Revenue Comparison
See more margin details: CTRA Operating Income Comparison | FANG Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell FANG Stock to see if Diamondback Energy’s edge holds up under the hood or if Coterra Energy still has cards to play (see Buy or Sell CTRA Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CTRA Return | -4% | 23% | 41% | 9% | 3% | 4% | 79% | ||
| FANG Return | -46% | 128% | 35% | 20% | 10% | -13% | 96% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 15% | 112% | <=== | |
| Monthly Win Rates [3] | |||||||||
| CTRA Win Rate | 42% | 50% | 67% | 58% | 33% | 50% | 50% | ||
| FANG Win Rate | 25% | 83% | 50% | 67% | 67% | 70% | 60% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| CTRA Max Drawdown | -22% | -10% | 0% | -6% | -9% | -11% | -10% | <=== | |
| FANG Max Drawdown | -83% | 0% | 0% | -8% | -4% | -27% | -20% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/4/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read FANG Dip Buyer Analyses and CTRA Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.