Head to Head Survey: Murphy Oil Corporation (MUR) vs. Transportadora De Gas Sa Ord B (TGS)

Murphy Oil Corporation (NYSE: MUR) and Transportadora De Gas Sa Ord B (NYSE:TGS) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for Murphy Oil Corporation and Transportadora De Gas Sa Ord B, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Murphy Oil Corporation 2 7 1 0 1.90
Transportadora De Gas Sa Ord B 0 0 1 0 3.00

Murphy Oil Corporation currently has a consensus price target of C$30.50, suggesting a potential upside of 4.67%. Transportadora De Gas Sa Ord B has a consensus price target of $25.00, suggesting a potential upside of 22.43%. Given Transportadora De Gas Sa Ord B’s stronger consensus rating and higher possible upside, analysts plainly believe Transportadora De Gas Sa Ord B is more favorable than Murphy Oil Corporation.

Dividends

Murphy Oil Corporation pays an annual dividend of C$1.00 per share and has a dividend yield of 3.4%. Transportadora De Gas Sa Ord B does not pay a dividend. Murphy Oil Corporation pays out -196.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Murphy Oil Corporation and Transportadora De Gas Sa Ord B’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Murphy Oil Corporation $1.87 billion 2.68 -$275.97 million C($0.51) -57.14
Transportadora De Gas Sa Ord B $501.12 million 6.47 $63.00 million $0.79 25.85

Transportadora De Gas Sa Ord B has higher revenue, but lower earnings than Murphy Oil Corporation. Murphy Oil Corporation is trading at a lower price-to-earnings ratio than Transportadora De Gas Sa Ord B, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Murphy Oil Corporation and Transportadora De Gas Sa Ord B’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Murphy Oil Corporation -4.15% -1.25% -0.61%
Transportadora De Gas Sa Ord B 21.43% 66.27% 22.54%

Risk & Volatility

Murphy Oil Corporation has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500. Comparatively, Transportadora De Gas Sa Ord B has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

98.5% of Murphy Oil Corporation shares are held by institutional investors. Comparatively, 8.3% of Transportadora De Gas Sa Ord B shares are held by institutional investors. 6.9% of Murphy Oil Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Transportadora De Gas Sa Ord B beats Murphy Oil Corporation on 8 of the 14 factors compared between the two stocks.

Murphy Oil Corporation Company Profile

Murphy Oil Corporation (Murphy) is an oil and gas exploration and production company. The Company’s exploration and production business explores for and produces crude oil, natural gas and natural gas liquids across the world. Its exploration and production activities are subdivided into four geographic segments: the United States, Canada, Malaysia and all other countries. It explores for and produces crude oil, natural gas and natural gas liquids around the world. This business maintains upstream operating offices in several locations around the world, including Houston, Texas, Calgary, Alberta, and Kuala Lumpur, Malaysia. As of December 31, 2016, Murphy’s principal exploration and production activities were conducted in the United States by Murphy Exploration & Production Company-USA (Murphy Expro USA), in Malaysia, Australia, Brunei, and Vietnam by Murphy Exploration & Production Company-International (Murphy Expro International) and its subsidiaries, and in Western Canada.

Transportadora De Gas Sa Ord B Company Profile

Transportadora de Gas del Sur S.A. is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (Liquids). The Company operates through four segments: Natural Gas Transportation Services, Liquids Production and Commercialization, Other Services and Telecommunications. The Company’s pipeline system connects gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. It also provides midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation and maintenance services. The Company transports gas through approximately 5,675 miles of pipeline, of which it owns 4,745 miles. It operates the remaining 930 miles, which are owned by the Gas Trusts.

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