Magnolia Oil & Gas (NYSE:MGY) and W&T Offshore (NYSE:WTI) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.
This is a breakdown of current recommendations for Magnolia Oil & Gas and W&T Offshore, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Magnolia Oil & Gas||0||6||7||0||2.54|
Risk & Volatility
Magnolia Oil & Gas has a beta of 2.72, meaning that its share price is 172% more volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 3.16, meaning that its share price is 216% more volatile than the S&P 500.
Institutional and Insider Ownership
69.3% of Magnolia Oil & Gas shares are held by institutional investors. Comparatively, 36.6% of W&T Offshore shares are held by institutional investors. 5.6% of Magnolia Oil & Gas shares are held by insiders. Comparatively, 34.1% of W&T Offshore shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Magnolia Oil & Gas and W&T Offshore’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Magnolia Oil & Gas||$936.14 million||3.05||$50.20 million||$0.30||39.03|
|W&T Offshore||$534.90 million||0.92||$74.09 million||$0.60||5.77|
W&T Offshore has lower revenue, but higher earnings than Magnolia Oil & Gas. W&T Offshore is trading at a lower price-to-earnings ratio than Magnolia Oil & Gas, indicating that it is currently the more affordable of the two stocks.
This table compares Magnolia Oil & Gas and W&T Offshore’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Magnolia Oil & Gas||-199.68%||-1.06%||-0.71%|
W&T Offshore beats Magnolia Oil & Gas on 8 of the 14 factors compared between the two stocks.
About Magnolia Oil & Gas
Magnolia Oil & Gas Corporation engages in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States. The company's properties are located primarily in Karnes County and the Giddings Field in South Texas principally comprising the Eagle Ford Shale and the Austin Chalk formation. As of December 31, 2020, its assets consisted of a total leasehold position of 460,398 net acres, including 23,513 net acres in Karnes, Gonzales, DeWitt, and Atascosa counties, Texas; 436,885 net acres in the Giddings Field located in Austin, Brazos, Burleson, Fayette, Lee, Grimes, Montgomery, and Washington Counties, Texas; and approximately 1,160 net wells with a total production capacity of 61.8 thousand barrels of oil equivalent per day. The company is headquartered in Houston, Texas.
About W&T Offshore
W&T Offshore, Inc., an independent oil and natural gas producer, engages in the acquisition, exploration, and development of oil and natural gas properties in the Gulf of Mexico. The company sells crude oil, natural gas liquids, and natural gas. It holds working interest in approximately 43 offshore fields in federal and state waters. The company also owns interest in approximately 146 offshore structures. It has interests in offshore leases covering approximately 506,000 net acres spanning across the Outer Continental Shelf off the coasts of Louisiana, Texas, Mississippi, and Alabama. As of December 31, 2020, its total proved reserves were 144.4 million barrels of oil equivalent. The company was founded in 1983 and is headquartered in Houston, Texas.
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