Magnolia Oil & Gas (NYSE:MGY) and W&T Offshore (NYSE:WTI) Head to Head Comparison

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.

Analyst Ratings

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
W&T Offshore 0 1 1 0 2.50

Magnolia Oil & Gas presently has a consensus target price of $9.21, indicating a potential downside of 21.36%. W&T Offshore has a consensus target price of $3.80, indicating a potential upside of 9.83%. Given W&T Offshore’s higher probable upside, analysts plainly believe W&T Offshore is more favorable than Magnolia Oil & Gas.

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.

Profitability

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 31.40% -21.21% 4.67%

Summary

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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