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DEC vs OBE

DEC
Diversified Energy Company
BULLISH
Price
$16.36
Market Cap
$1.15B
Sector
Energy
AI Confidence
75%
OBE
Obsidian Energy Ltd.
BEARISH
Price
$14.28
Market Cap
$964.9M
Sector
Energy
AI Confidence
85%

Valuation

P/E Ratio
DEC
3.57
OBE
39.67
Forward P/E
DEC
7.79
OBE
8.68
P/B Ratio
DEC
1.28
OBE
0.94
P/S Ratio
DEC
0.71
OBE
1.78
EV/EBITDA
DEC
4.59
OBE
--

Profitability

Gross Margin
DEC
54.16%
OBE
55.57%
Operating Margin
DEC
46.4%
OBE
-0.7%
Profit Margin
DEC
21.17%
OBE
6.51%
ROE
DEC
48.6%
OBE
2.52%
ROA
DEC
5.96%
OBE
2.62%

Growth

Revenue Growth
DEC
95.7%
OBE
-39.2%
Earnings Growth
DEC
--
OBE
--

Financial Health

Debt/Equity
DEC
3.04
OBE
0.14
Current Ratio
DEC
0.6
OBE
0.54
Quick Ratio
DEC
0.41
OBE
0.34

Dividends

Dividend Yield
DEC
7.09%
OBE
--
Payout Ratio
DEC
25.33%
OBE
0.0%

AI Verdict

DEC BULLISH

DEC presents a classic deep-value opportunity, characterized by a stable Piotroski F-Score of 5/9 and a massive valuation gap, trading at $16.36 against a Graham Number of $36.29. The company exhibits exceptional profitability with an ROE of 48.60% and explosive YoY revenue growth of 95.70%. However, these strengths are offset by significant liquidity risks, evidenced by a Current Ratio of 0.60 and a high Debt/Equity ratio of 3.04. While insider sentiment and technical trends are currently bearish, the fundamental value and dividend sustainability suggest a strong long-term upside.

Strengths
Extreme valuation discount (P/E of 3.57 vs sector avg 31.61)
Exceptional Return on Equity (ROE) of 48.60%
Explosive YoY revenue growth of 95.70%
Risks
Poor short-term liquidity (Current Ratio 0.60)
High leverage with a Debt/Equity ratio of 3.04
Bearish insider activity (Sale of 2.1M shares by a Director)
OBE BEARISH

Obsidian Energy (OBE) presents a stark divergence between parabolic price action and deteriorating fundamentals. While the Piotroski F-Score of 4/9 indicates stable health, the company is facing severe revenue contraction (-39.2% YoY) and a critical liquidity crunch with a current ratio of 0.54. The stock is trading at $14.28, significantly exceeding both its Graham Number ($11.07) and its growth-based intrinsic value ($2.52), while analysts suggest a target price of $6.81, implying a potential 50%+ correction.

Strengths
Very low Debt/Equity ratio (0.14) compared to sector average
Price-to-Book ratio (0.94) suggests the stock is trading near book value
Exceptional short-term price momentum (1Y Change +239.2%)
Risks
Severe revenue decline (-39.2% YoY and -41.57% Q/Q)
Poor liquidity position with a Current Ratio of 0.54 and Quick Ratio of 0.34
Significant overvaluation relative to intrinsic value ($2.52) and analyst targets ($6.81)

Compare Another Pair

DEC vs OBE: Head-to-Head Comparison

This page compares Diversified Energy Company (DEC) and Obsidian Energy Ltd. (OBE) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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