Magnolia Oil & Gas (MGY) & Its Peers Critical Contrast

Magnolia Oil & Gas (NYSE:MGY – Get Free Report) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its rivals? We will compare Magnolia Oil & Gas to similar companies based on the strength of its profitability, valuation, risk, earnings, dividends, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Magnolia Oil & Gas and its rivals, as provided by MarketBeat.

Magnolia Oil & Gas presently has a consensus target price of $31.44, suggesting a potential upside of 36.85%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.78%. Given Magnolia Oil & Gas’ stronger consensus rating and higher possible upside, equities analysts clearly believe Magnolia Oil & Gas is more favorable than its rivals.

Earnings & Valuation

This table compares Magnolia Oil & Gas and its rivals top-line revenue, earnings per share and valuation.

Magnolia Oil & Gas’ rivals have higher revenue and earnings than Magnolia Oil & Gas. Magnolia Oil & Gas is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Magnolia Oil & Gas pays an annual dividend of $0.72 per share and has a dividend yield of 3.1%. Magnolia Oil & Gas pays out 32.3% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.2% and pay out -133.8% of their earnings in the form of a dividend. Magnolia Oil & Gas has raised its dividend for 3 consecutive years. Magnolia Oil & Gas lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Magnolia Oil & Gas has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Magnolia Oil & Gas’ rivals have a beta of -3.76, meaning that their average share price is 476% less volatile than the S&P 500.

Profitability

This table compares Magnolia Oil & Gas and its rivals’ net margins, return on equity and return on assets.

Insider & Institutional Ownership

94.7% of Magnolia Oil & Gas shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 0.9% of Magnolia Oil & Gas shares are held by company insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Magnolia Oil & Gas beats its rivals on 10 of the 15 factors compared.

About Magnolia Oil & Gas

(Get Free Report)

Magnolia Oil & Gas Corporation is an independent exploration and production company focused on developing oil and natural gas resources in South Texas. Its operations target the Eagle Ford Shale and Austin Chalk formations. The company’s assets are concentrated in the Karnes and Giddings areas. Its production includes crude oil, natural gas and natural gas liquids. Magnolia was established in 2018 through a business combination with TPG Pace Holdings. It is headquartered in Houston, Texas.