Rwe Ag Sp (OTCMKTS:RWEOY) and Marathon Oil (NYSE:MRO) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Rwe Ag Sp and Marathon Oil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rwe Ag Sp 63.46% -4.22% -0.97%
Marathon Oil 4.98% 1.90% 1.13%

Valuation & Earnings

This table compares Rwe Ag Sp and Marathon Oil’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rwe Ag Sp $14.70 billion 1.45 $9.53 billion ($1.27) -27.23
Marathon Oil $5.19 billion 0.91 $480.00 million $0.75 7.95

Rwe Ag Sp has higher revenue and earnings than Marathon Oil. Rwe Ag Sp is trading at a lower price-to-earnings ratio than Marathon Oil, indicating that it is currently the more affordable of the two stocks.

Dividends

Rwe Ag Sp pays an annual dividend of $0.56 per share and has a dividend yield of 1.6%. Marathon Oil pays an annual dividend of $0.20 per share and has a dividend yield of 3.4%. Rwe Ag Sp pays out -44.1% of its earnings in the form of a dividend. Marathon Oil pays out 26.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of current ratings for Rwe Ag Sp and Marathon Oil, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rwe Ag Sp 0 1 7 1 3.00
Marathon Oil 4 21 2 0 1.93

Marathon Oil has a consensus price target of $10.80, suggesting a potential upside of 81.21%. Given Marathon Oil’s higher probable upside, analysts plainly believe Marathon Oil is more favorable than Rwe Ag Sp.

Volatility and Risk

Rwe Ag Sp has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Marathon Oil has a beta of 3.37, suggesting that its stock price is 237% more volatile than the S&P 500.

Insider and Institutional Ownership

0.2% of Rwe Ag Sp shares are owned by institutional investors. Comparatively, 81.2% of Marathon Oil shares are owned by institutional investors. 0.5% of Marathon Oil shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Marathon Oil beats Rwe Ag Sp on 9 of the 17 factors compared between the two stocks.

Rwe Ag Sp Company Profile

RWE Aktiengesellschaft supplies electricity and gas. It operates through four segments: Lignite & Nuclear; European Power; Supply & Trading; and Innogy. The company operates power stations based on lignite, coal, gas, nuclear power, renewable energies, and hydro and biomass; and operates and maintains solar farms, as well as generates heat. It is also involved in the supply and trade of power, gas, coal, freight, oil, weather derivatives, biomass, emissions certificates, and renewable energies; and construction of battery storage facilities. RWE Aktiengesellschaft manages electricity distribution networks; and gas distribution networks. The company offers its products and services to residential and commercial customers, industrial and corporate customers, and distributors in Germany, the Netherlands, Belgium, the United Kingdom, and Eastern Europe. It serves approximately 15.9 million electricity customers and approximately 6.6 million gas customers; and has a power generation capacity of approximately 40,000 megawatts. The company was founded in 1898 and is headquartered in Essen, Germany.

Marathon Oil Company Profile

Marathon Oil Corporation operates as an energy company in the United States, Equatorial Guinea, the United Kingdom, and Libya. It operates in two segments, United States and International. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol. As of December 31, 2018, it had estimated proved developed reserves totaling 752 million barrels of oil equivalent (mmboe); and estimated proved undeveloped reserves totaling 529 mmboe. The company was formerly known as USX Corporation and changed its name to Marathon Oil Corporation in July 2001. Marathon Oil Corporation was founded in 1887 and is headquartered in Houston, Texas.

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