After TALO’s 18% Climb in a Week, FANG Looks Like the Stronger Long-Term Play
Diamondback Energy (FANG) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Talos Energy (TALO), suggesting you may be better off investing in FANG
- FANG’s quarterly revenue growth was 51.8%, vs. TALO’s 10.6%.
- In addition, its Last 12 Months revenue growth came in at 51.8%, ahead of TALO’s 10.6%.
- FANG leads on profitability over both periods – LTM margin of 37.8% and 3-year average of 50.0%.
TALO explores and produces oil and natural gas in the U.S. Gulf of Mexico and offshore Mexico, founded in 2011 and based in Houston, Texas. 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
| TALO | FANG | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 38.7 | 8.0 | FANG |
| Revenue Growth | |||
| Last Quarter | 10.6% | 51.8% | FANG |
| Last 12 Months | 10.6% | 51.8% | FANG |
| Last 3 Year Average | 7.4% | 18.3% | FANG |
| Operating Margins | |||
| Last 12 Months | 2.3% | 37.8% | FANG |
| Last 3 Year Average | 13.1% | 50.0% | FANG |
| Momentum | |||
| Last 3 Year Return | -54.3% | 22.6% | 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: TALO Revenue Comparison | FANG Revenue Comparison
See more margin details: TALO 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 Talos Energy still has cards to play (see Buy or Sell TALO Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| TALO Return | -73% | 19% | 93% | -25% | -32% | -0% | -69% | ||
| FANG Return | -46% | 128% | 35% | 20% | 10% | -10% | 96% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 10% | 100% | <=== | |
| Monthly Win Rates [3] | |||||||||
| TALO Win Rate | 42% | 58% | 67% | 42% | 33% | 71% | 52% | ||
| FANG Win Rate | 25% | 83% | 50% | 67% | 67% | 71% | 61% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| TALO Max Drawdown | -83% | 0% | -0% | -41% | -36% | -34% | -32% | ||
| 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 8/26/2025 (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 TALO Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.