Analyzing Magnolia Oil & Gas (NYSE:MGY) and QEP Resources (NYSE:QEP)
Magnolia Oil & Gas (NYSE:MGY) and QEP Resources (NYSE:QEP) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Volatility and Risk
Magnolia Oil & Gas has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, QEP Resources has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500.
68.2% of Magnolia Oil & Gas shares are owned by institutional investors. Comparatively, 99.8% of QEP Resources shares are owned by institutional investors. 7.9% of Magnolia Oil & Gas shares are owned by company insiders. Comparatively, 1.7% of QEP Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Magnolia Oil & Gas and QEP Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Magnolia Oil & Gas||7.80%||2.81%||2.21%|
This is a summary of current ratings for Magnolia Oil & Gas and QEP Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Magnolia Oil & Gas||0||3||8||0||2.73|
Magnolia Oil & Gas currently has a consensus target price of $15.30, suggesting a potential upside of 45.71%. QEP Resources has a consensus target price of $6.75, suggesting a potential upside of 129.59%. Given QEP Resources’ higher probable upside, analysts plainly believe QEP Resources is more favorable than Magnolia Oil & Gas.
Valuation and Earnings
This table compares Magnolia Oil & Gas and QEP Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Magnolia Oil & Gas||$882.40 million||3.08||$257.65 million||N/A||N/A|
|QEP Resources||$1.93 billion||0.36||-$1.01 billion||($0.17)||-17.24|
Magnolia Oil & Gas has higher earnings, but lower revenue than QEP Resources.
Magnolia Oil & Gas beats QEP Resources on 9 of the 13 factors compared between the two stocks.
Magnolia Oil & Gas Company Profile
Magnolia Oil & Gas Corporation engages in the business of acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States. The company has oil and natural gas properties located primarily in Karnes County and the Giddings Field in South Texas primarily comprising the Eagle Ford Shale and the Austin Chalk formation. As of December 31, 2018, its assets consisted of a total leasehold position of 455,964 net acres, including 16,841 net acres with 200 net producing wells in the Karnes County portion of the Eagle Ford Shale; and 439,123 net acres with 846 net producing wells in the Giddings Field of the Austin Chalk. The company is based in Houston, Texas.
QEP Resources Company Profile
QEP Resources, Inc. operates as a crude oil and natural gas exploration and production company in the United States. The company conducts exploration and production activities in the Permian Basin in Western Texas; and Williston Basin in North Dakota. As of December 31, 2018, it had estimated proved reserves of approximately 658.2 MMboe. The company sells its gas, oil, and natural gas liquids to various customers, including wholesale marketers, industrial users, local distribution companies, midstream service providers, and utility companies. QEP Resources, Inc. was incorporated in 2010 and is headquartered in Denver, Colorado.
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