Occidental Petroleum vs Diamondback Energy: Which Stock Could Rally?
Occidental Petroleum surged 16% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Diamondback Energy gives you more. Diamondback Energy (FANG) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Occidental Petroleum (OXY) stock, suggesting you may be better off investing in FANG
- FANG’s quarterly revenue growth was -9.6%, vs. OXY’s -14.7%.
- In addition, its Last 12 Months revenue growth came in at 35.4%, ahead of OXY’s -1.9%.
- FANG leads on profitability over both periods – LTM margin of 32.9% and 3-year average of 42.5%.
These differences become even clearer when you look at the financials side by side. The table highlights how OXY’s fundamentals stack up against those of FANG on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| OXY | FANG | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 16.5 | 11.1 | FANG |
| Revenue Growth | |||
| Last Quarter | -14.7% | -9.6% | FANG |
| Last 12 Months | -1.9% | 35.4% | FANG |
| Last 3 Year Average | -14.5% | 18.3% | FANG |
| Operating Margins | |||
| Last 12 Months | 17.2% | 32.9% | FANG |
| Last 3 Year Average | 19.7% | 42.5% | FANG |
| Momentum | |||
| Last 3 Year Return | 5.0% | 57.5% | FANG |
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: OXY Revenue Comparison | FANG Revenue Comparison
See more margin details: OXY Operating Income Comparison | FANG Operating Income Comparison
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See detailed fundamentals on Buy or Sell FANG Stock and Buy or Sell OXY Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| OXY Return | 68% | 119% | -4% | -16% | -15% | 59% | 300% | ||
| FANG Return | 128% | 35% | 20% | 10% | -6% | 32% | 408% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -5% | 74% | ||
| Monthly Win Rates [3] | |||||||||
| OXY Win Rate | 58% | 58% | 50% | 42% | 58% | 100% | 61% | ||
| FANG Win Rate | 83% | 50% | 67% | 67% | 67% | 100% | 72% | <=== | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 33% | 60% | ||
| Max Drawdowns [4] | |||||||||
| OXY Max Drawdown | 0% | 0% | -11% | -23% | -27% | -0% | -10% | ||
| FANG Max Drawdown | 0% | 0% | -8% | -4% | -27% | -7% | -8% | <=== | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | -9% | ||
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 4/1/2026 (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 OXY Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about OXY or FANG? Consider portfolio approach.
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Individual stocks can soar or tank, but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside, and mitigate the downside associated with any individual stock.
Beating the market consistently is hard, but the Trefis High Quality (HQ) Portfolio makes it look achievable. By selecting 30 high-conviction stocks, the HQ strategy has historically outpaced the S&P 500, S&P Mid-cap, and Russell 2000. See how this curated selection delivers superior risk-adjusted returns in our detailed performance factsheet.