Magnolia Oil & Gas (NYSE:MGY – Get Free Report) and Par Pacific (NYSE:PARR – Get Free Report) are both mid-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
Risk and Volatility
Magnolia Oil & Gas has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Par Pacific has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
Profitability
This table compares Magnolia Oil & Gas and Par Pacific’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Magnolia Oil & Gas | 28.77% | 21.04% | 14.46% |
| Par Pacific | 9.94% | 56.19% | 21.61% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Magnolia Oil & Gas and Par Pacific, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magnolia Oil & Gas | 0 | 6 | 12 | 1 | 2.74 |
| Par Pacific | 0 | 4 | 7 | 1 | 2.75 |
Magnolia Oil & Gas currently has a consensus target price of $31.59, indicating a potential upside of 33.52%. Par Pacific has a consensus target price of $90.43, indicating a potential upside of 33.16%. Given Magnolia Oil & Gas’ higher possible upside, equities analysts clearly believe Magnolia Oil & Gas is more favorable than Par Pacific.
Earnings & Valuation
This table compares Magnolia Oil & Gas and Par Pacific”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Magnolia Oil & Gas | $1.31 billion | 4.27 | $325.25 million | $2.28 | 10.38 |
| Par Pacific | $7.46 billion | 0.46 | $369.39 million | $19.09 | 3.56 |
Par Pacific has higher revenue and earnings than Magnolia Oil & Gas. Par Pacific 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.
Institutional & Insider Ownership
94.7% of Magnolia Oil & Gas shares are held by institutional investors. Comparatively, 92.2% of Par Pacific shares are held by institutional investors. 0.9% of Magnolia Oil & Gas shares are held by insiders. Comparatively, 3.6% of Par Pacific shares are held 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.
Summary
Par Pacific beats Magnolia Oil & Gas on 8 of the 14 factors compared between the two stocks.
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.
About Par Pacific
Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 and is headquartered in Houston, Texas.
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