Analyzing Magnolia Oil & Gas (MGY) and The Competition

Magnolia Oil & Gas (NYSE:MGY) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its rivals? We will compare Magnolia Oil & Gas to similar companies based on the strength of its analyst recommendations, risk, institutional ownership, dividends, valuation, earnings and profitability.

Dividends

Magnolia Oil & Gas pays an annual dividend of $0.72 per share and has a dividend yield of 3.0%. Magnolia Oil & Gas pays out 32.3% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.2% and pay out -133.7% of their earnings in the form of a dividend. Magnolia Oil & Gas has raised its dividend for 3 consecutive years. Magnolia Oil & Gas lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Magnolia Oil & Gas and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Magnolia Oil & Gas	$1.67 billion	$325.25 million	10.61
Magnolia Oil & Gas Competitors	$14.81 billion	$5.51 billion	-0.95

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

Insider & Institutional Ownership

94.7% of Magnolia Oil & Gas shares are owned by institutional investors. Comparatively, 30.8% 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, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magnolia Oil & Gas	25.82%	19.90%	12.69%
Magnolia Oil & Gas Competitors	-456.96%	19.46%	6.50%

Risk & Volatility

Magnolia Oil & Gas has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Magnolia Oil & Gas’ rivals have a beta of -3.76, meaning that their average share price is 476% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Magnolia Oil & Gas and its rivals, as provided 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	5982	26994	40850	2423	2.52

Magnolia Oil & Gas currently has a consensus target price of $31.59, suggesting a potential upside of 33.52%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.96%. Given Magnolia Oil & Gas’ stronger consensus rating and higher probable upside, research analysts plainly believe Magnolia Oil & Gas is more favorable than its rivals.

Summary

Magnolia Oil & Gas beats its rivals 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.