Financial Contrast: Magnolia Oil & Gas (NYSE:MGY) & China Coal Energy (OTCMKTS:CCOZY)

Magnolia Oil & Gas (NYSE:MGYGet Free Report) and China Coal Energy (OTCMKTS:CCOZYGet Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Magnolia Oil & Gas and China Coal Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magnolia Oil & Gas 0 6 10 2 2.78
China Coal Energy 0 0 0 1 4.00

Magnolia Oil & Gas currently has a consensus price target of $31.71, indicating a potential upside of 26.25%. Given Magnolia Oil & Gas’ higher probable upside, research analysts clearly believe Magnolia Oil & Gas is more favorable than China Coal Energy.

Dividends

Magnolia Oil & Gas pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. China Coal Energy pays an annual dividend of $0.85 per share and has a dividend yield of 3.1%. Magnolia Oil & Gas pays out 31.6% of its earnings in the form of a dividend. China Coal Energy pays out 21.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Magnolia Oil & Gas has raised its dividend for 3 consecutive years. China Coal Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

94.7% of Magnolia Oil & Gas shares are owned by institutional investors. 0.9% of Magnolia Oil & Gas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Magnolia Oil & Gas and China Coal Energy”s top-line 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 4.54 $325.25 million $2.28 11.02
China Coal Energy $20.59 billion 0.87 $2.02 billion $3.98 6.78

China Coal Energy has higher revenue and earnings than Magnolia Oil & Gas. China Coal Energy 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.

Volatility and Risk

Magnolia Oil & Gas has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, China Coal Energy has a beta of -0.31, indicating that its stock price is 131% less volatile than the S&P 500.

Profitability

This table compares Magnolia Oil & Gas and China Coal Energy’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%
China Coal Energy N/A N/A N/A

Summary

Magnolia Oil & Gas beats China Coal Energy on 12 of the 18 factors compared between the two stocks.

About Magnolia Oil & Gas

(Get Free Report)

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 China Coal Energy

(Get Free Report)

China Coal Energy Company Limited primarily engages in the coal production and trading and coal chemical businesses in the People's Republic of China and internationally. The company offers polyolefin, methanol, urea, and other coal chemical products. It is also involved in the coal mining equipment manufacturing, pithead power generation, and other activities. The company was founded in 2006 and is based in Beijing, the People's Republic of China. China Coal Energy Company Limited operates as a subsidiary of China National Coal Group Co., Ltd.

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