AR vs. FANG: A Head-to-Head Stock Comparison

Company Overview

FANG’s market capitalization of 44.74 billion USD is significantly greater than AR’s 12.94 billion USD, highlighting its more substantial market valuation.

FANG carries a higher beta at 1.04, indicating it’s more sensitive to market moves, while AR (beta: 0.69) exhibits greater stability.

Performance Comparison

This chart compares the performance of AR and FANG over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of AR and FANG. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• AR’s Price-to-Earnings (P/E) ratio of 447.96 is very high. This often means that its current market price reflects high investor confidence in its future earnings potential, but it could also suggest the stock is expensive relative to its current earnings power.

Dividend Comparison

AR currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while FANG provides a 3.42% dividend yield, offering investors a component of income return.

Financial Strength Metrics Comparison

This section evaluates the financial strength of AR and FANG. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• AR’s current ratio of 0.39 and FANG’s current ratio of 0.86 are both considered low. For AR, this level suggests it might encounter challenges in using its current assets to satisfy its immediate financial obligations. FANG’s low current ratio also points to potential constraints on its liquidity, meaning it could find it difficult to cover short-term liabilities with its available assets.