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

Magnolia Oil & Gas (NYSE:MGY) is one of 1,050 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its peers? We will compare Magnolia Oil & Gas to similar businesses based on the strength of its dividends, earnings, profitability, valuation, institutional ownership, analyst recommendations and risk.

Earnings & Valuation

This table compares Magnolia Oil & Gas and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Magnolia Oil & Gas	$1.31 billion	$325.25 million	10.97
Magnolia Oil & Gas Competitors	$272.75 billion	$5.52 billion	0.23

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

Institutional & Insider Ownership

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

Risk and Volatility

Magnolia Oil & Gas has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Magnolia Oil & Gas’ peers have a beta of -4.04, indicating that their average stock price is 504% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magnolia Oil & Gas	28.77%	21.04%	14.46%
Magnolia Oil & Gas Competitors	-471.71%	20.53%	6.26%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Magnolia Oil & Gas and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnolia Oil & Gas	0	6	12	1	2.74
Magnolia Oil & Gas Competitors	5964	26943	40767	2408	2.52

Magnolia Oil & Gas presently has a consensus target price of $31.53, suggesting a potential upside of 26.06%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 21.89%. Given Magnolia Oil & Gas’ stronger consensus rating and higher probable upside, research analysts clearly believe Magnolia Oil & Gas is more favorable than its peers.

Dividends

Magnolia Oil & Gas pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Magnolia Oil & Gas pays out 31.6% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.6% and pay out -122.4% of their earnings in the form of a dividend. Magnolia Oil & Gas has increased its dividend for 3 consecutive years. Magnolia Oil & Gas lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

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

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.