Magnolia Oil & Gas (NYSE:MGY) and Matador Resources (NYSE:MTDR) are both mid-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.
Risk and Volatility
Magnolia Oil & Gas has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Matador Resources has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Magnolia Oil & Gas and Matador Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Magnolia Oil & Gas||0||0||8||0||3.00|
Magnolia Oil & Gas presently has a consensus price target of $16.50, indicating a potential upside of 34.91%. Matador Resources has a consensus price target of $34.40, indicating a potential upside of 92.50%. Given Matador Resources’ higher probable upside, analysts plainly believe Matador Resources is more favorable than Magnolia Oil & Gas.
Valuation & Earnings
This table compares Magnolia Oil & Gas and Matador Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Magnolia Oil & Gas||N/A||N/A||$1.53 million||N/A||N/A|
|Matador Resources||$544.28 million||3.82||$125.86 million||$0.72||24.82|
Matador Resources has higher revenue and earnings than Magnolia Oil & Gas.
This table compares Magnolia Oil & Gas and Matador Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Magnolia Oil & Gas||N/A||-2.13%||-1.07%|
Insider & Institutional Ownership
47.8% of Magnolia Oil & Gas shares are owned by institutional investors. Comparatively, 88.1% of Matador Resources shares are owned by institutional investors. 11.1% of Matador Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Matador Resources beats Magnolia Oil & Gas on 10 of the 11 factors compared between the two stocks.
Magnolia Oil & Gas Company Profile
Magnolia Oil & Gas Corporation operates as an oil and gas exploration and production company. It has operations in South Texas in the core of the Eagle Ford. The company is headquartered in Houston, Texas.
Matador Resources Company Profile
Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. It operates in two segments, Exploration and Production, and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. It also operates the Eagle Ford shale play in South Texas; and the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. In addition, the company conducts midstream operations in support of its exploration, development, and production operations; provides natural gas processing and oil transportation services; and offers oil, natural gas, and salt water gathering, as well as salt water disposal services to third parties. As of December 31, 2017, its estimated total proved oil and natural gas reserves were 152.8 million barrels of oil equivalent, including 86.7 million stock tank barrels of oil and 396.2 billion cubic feet of natural gas. The company was formerly known as Matador Holdco, Inc. and changed its name to Matador Resources Company in August 2011. Matador Resources Company was founded in 2003 and is headquartered in Dallas, Texas.
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