Marathon Oil (MRO) and Transportadora De Gas Sa Ord B (TGS) Head-To-Head Contrast

Marathon Oil (NYSE: MRO) and Transportadora De Gas Sa Ord B (NYSE:TGS) are both mid-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Institutional and Insider Ownership

80.7% of Marathon Oil shares are owned by institutional investors. Comparatively, 8.9% of Transportadora De Gas Sa Ord B shares are owned by institutional investors. 0.4% of Marathon Oil shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Marathon Oil has a beta of 2.39, suggesting that its share price is 139% more volatile than the S&P 500. Comparatively, Transportadora De Gas Sa Ord B has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Profitability

This table compares Marathon Oil and Transportadora De Gas Sa Ord B’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marathon Oil -148.07% -3.02% -1.60%
Transportadora De Gas Sa Ord B 21.43% 66.26% 22.54%

Earnings and Valuation

This table compares Marathon Oil and Transportadora De Gas Sa Ord B’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marathon Oil $4.65 billion 2.77 -$2.14 billion ($8.32) -1.82
Transportadora De Gas Sa Ord B $501.12 million 7.39 $63.00 million $0.91 25.60

Transportadora De Gas Sa Ord B has lower revenue, but higher earnings than Marathon Oil. Marathon Oil is trading at a lower price-to-earnings ratio than Transportadora De Gas Sa Ord B, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Marathon Oil and Transportadora De Gas Sa Ord B, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marathon Oil 1 13 9 0 2.35
Transportadora De Gas Sa Ord B 0 0 1 0 3.00

Marathon Oil currently has a consensus price target of $16.87, indicating a potential upside of 11.34%. Transportadora De Gas Sa Ord B has a consensus price target of $25.00, indicating a potential upside of 7.30%. Given Marathon Oil’s higher possible upside, analysts plainly believe Marathon Oil is more favorable than Transportadora De Gas Sa Ord B.

Dividends

Marathon Oil pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Transportadora De Gas Sa Ord B does not pay a dividend. Marathon Oil pays out -2.4% of its earnings in the form of a dividend.

Summary

Marathon Oil beats Transportadora De Gas Sa Ord B on 8 of the 15 factors compared between the two stocks.

About Marathon Oil

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.

About Transportadora De Gas Sa Ord B

Transportadora de Gas del Sur S.A. is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (Liquids). The Company operates through four segments: Natural Gas Transportation Services, Liquids Production and Commercialization, Other Services and Telecommunications. The Company’s pipeline system connects gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. It also provides midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation and maintenance services. The Company transports gas through approximately 5,675 miles of pipeline, of which it owns 4,745 miles. It operates the remaining 930 miles, which are owned by the Gas Trusts.

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