Critical Analysis: Riverdale Oil and Gas (OTCMKTS:RVDO) vs. Murphy Oil (NYSE:MUR)

Murphy Oil (NYSE:MUR) and Riverdale Oil and Gas (OTCMKTS:RVDO) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Profitability

This table compares Murphy Oil and Riverdale Oil and Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Murphy Oil	13.44%	7.66%	4.28%
Riverdale Oil and Gas	N/A	N/A	N/A

Valuation & Earnings

This table compares Murphy Oil and Riverdale Oil and Gas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Murphy Oil	$3.02 billion	1.37	$407.17 million	$2.69	10.53
Riverdale Oil and Gas	N/A	N/A	N/A	N/A	N/A

Murphy Oil has higher revenue and earnings than Riverdale Oil and Gas.

Analyst Ratings

This is a summary of current ratings and recommmendations for Murphy Oil and Riverdale Oil and Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murphy Oil	1	9	3	0	2.15
Riverdale Oil and Gas	0	0	0	0	0.00

Murphy Oil currently has a consensus target price of $35.31, suggesting a potential upside of 24.62%. Given Murphy Oil’s stronger consensus rating and higher probable upside, equities analysts plainly believe Murphy Oil is more favorable than Riverdale Oil and Gas.

Insider & Institutional Ownership

78.3% of Murphy Oil shares are owned by institutional investors. 5.9% of Murphy Oil shares are owned by insiders. Comparatively, 28.1% of Riverdale Oil and Gas shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Murphy Oil has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500. Comparatively, Riverdale Oil and Gas has a beta of -8.49, suggesting that its stock price is 949% less volatile than the S&P 500.

Summary

Murphy Oil beats Riverdale Oil and Gas on 9 of the 10 factors compared between the two stocks.

About Murphy Oil

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.

About Riverdale Oil and Gas

Riverdale Oil and Gas Corporation produces oil and gas in the United States. The company was founded in 2005 and is headquartered in Austin, Texas.