Reviewing Magnolia Oil & Gas (NYSE:MGY) and Gran Tierra Energy (NYSE:GTE)
by Sarita Garza · The Markets DailyGran Tierra Energy (NYSE:GTE – Get Free Report) and Magnolia Oil & Gas (NYSE:MGY – Get Free Report) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.
Valuation and Earnings
This table compares Gran Tierra Energy and Magnolia Oil & Gas”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gran Tierra Energy | $638.42 million | 0.60 | -$6.29 million | ($7.25) | -1.49 |
| Magnolia Oil & Gas | $1.31 billion | 5.01 | $325.25 million | $2.28 | 12.16 |
Magnolia Oil & Gas has higher revenue and earnings than Gran Tierra Energy. Gran Tierra Energy is trading at a lower price-to-earnings ratio than Magnolia Oil & Gas, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gran Tierra Energy and Magnolia Oil & Gas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gran Tierra Energy | 7.17% | 11.36% | 3.28% |
| Magnolia Oil & Gas | 28.77% | 21.04% | 14.46% |
Insider and Institutional Ownership
31.7% of Gran Tierra Energy shares are owned by institutional investors. Comparatively, 94.7% of Magnolia Oil & Gas shares are owned by institutional investors. 5.8% of Gran Tierra Energy shares are owned by company insiders. Comparatively, 0.9% of Magnolia Oil & Gas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Gran Tierra Energy has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Gran Tierra Energy and Magnolia Oil & Gas, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gran Tierra Energy | 0 | 0 | 2 | 1 | 3.33 |
| Magnolia Oil & Gas | 0 | 7 | 10 | 1 | 2.67 |
Gran Tierra Energy currently has a consensus target price of $9.72, indicating a potential downside of 9.87%. Magnolia Oil & Gas has a consensus target price of $31.71, indicating a potential upside of 14.35%. Given Magnolia Oil & Gas’ higher probable upside, analysts clearly believe Magnolia Oil & Gas is more favorable than Gran Tierra Energy.
Summary
Magnolia Oil & Gas beats Gran Tierra Energy on 12 of the 14 factors compared between the two stocks.
About Gran Tierra Energy
Gran Tierra Energy Inc., together with its subsidiaries, engages in the exploration and production of oil and gas properties in Colombia and Ecuador. The company was founded in 2003 and is headquartered in Calgary, Canada.
About Magnolia Oil & Gas
Magnolia Oil & Gas Corp. engages in the acquisition, development, exploration, and production of oil and natural gas properties. It operates assets located in the Eagle Ford Shale and Austin Chalk formations in South Texas. The company was founded on February 14, 2017 and is headquartered in Houston, TX.