Financial Analysis: Marathon Oil Corporation (NYSE:MRO) & The Competition

Marathon Oil Corporation (NYSE: MRO) is one of 248 public companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its competitors? We will compare Marathon Oil Corporation to similar companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Marathon Oil Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marathon Oil Corporation -148.07% -3.02% -1.60%
Marathon Oil Corporation Competitors -441.62% -2.95% 3.16%

Dividends

Marathon Oil Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Marathon Oil Corporation pays out -2.4% of its earnings in the form of a dividend. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.7% and pay out 279.7% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for Marathon Oil Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marathon Oil Corporation 1 13 9 0 2.35
Marathon Oil Corporation Competitors 1557 8075 12918 284 2.52

Marathon Oil Corporation presently has a consensus price target of $17.38, suggesting a potential upside of 11.24%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 32.62%. Given Marathon Oil Corporation’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Marathon Oil Corporation has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

81.2% of Marathon Oil Corporation shares are held by institutional investors. Comparatively, 62.2% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 0.4% of Marathon Oil Corporation shares are held by company insiders. Comparatively, 11.9% of shares of all “Oil & Gas Exploration and Production” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Marathon Oil Corporation has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500. Comparatively, Marathon Oil Corporation’s competitors have a beta of 1.31, indicating that their average share price is 31% more volatile than the S&P 500.

Earnings and Valuation

This table compares Marathon Oil Corporation and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Marathon Oil Corporation $4.65 billion -$2.14 billion -1.88
Marathon Oil Corporation Competitors $1.90 billion -$445.52 million 22.68

Marathon Oil Corporation has higher revenue, but lower earnings than its competitors. Marathon Oil Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Marathon Oil Corporation competitors beat Marathon Oil Corporation on 9 of the 14 factors compared.

About Marathon Oil Corporation

Marathon Oil Corporation is an exploration and production (E&P) company. The Company operates through three segments: North America E&P, International E&P and Oil Sands Mining. The North America E&P segment explores for, produces and markets crude oil and condensate, natural gas liquids (NGLs) and natural gas in North America. The International E&P segment explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of North America, and produces and markets products manufactured from natural gas, such as liquefied natural gas (LNG) and methanol, in Equatorial Guinea (E.G.). The Oil Sands Mining segment mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.

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