Analyzing Murphy Oil (MUR) & Gulfport Energy (GPOR)

Gulfport Energy (NASDAQ: GPOR) and Murphy Oil (NYSE:MUR) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Dividends

Murphy Oil pays an annual dividend of $1.00 per share and has a dividend yield of 3.8%. Gulfport Energy does not pay a dividend. Murphy Oil pays out -769.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations for Gulfport Energy and Murphy Oil, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gulfport Energy 1 3 16 0 2.75
Murphy Oil 1 8 3 0 2.17

Gulfport Energy currently has a consensus target price of $18.24, indicating a potential upside of 86.67%. Murphy Oil has a consensus target price of $32.18, indicating a potential upside of 21.17%. Given Gulfport Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Gulfport Energy is more favorable than Murphy Oil.

Volatility and Risk

Gulfport Energy has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Murphy Oil has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500.

Valuation & Earnings

This table compares Gulfport Energy and Murphy Oil’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gulfport Energy $1.32 billion 1.35 $435.15 million $1.41 6.93
Murphy Oil $2.23 billion 2.06 -$311.78 million ($0.13) -204.31

Gulfport Energy has higher earnings, but lower revenue than Murphy Oil. Murphy Oil is trading at a lower price-to-earnings ratio than Gulfport Energy, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

88.7% of Gulfport Energy shares are owned by institutional investors. Comparatively, 97.0% of Murphy Oil shares are owned by institutional investors. 0.3% of Gulfport Energy shares are owned by company insiders. Comparatively, 6.9% of Murphy Oil shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Gulfport Energy and Murphy Oil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gulfport Energy 32.96% 8.64% 4.70%
Murphy Oil -14.31% -0.45% -0.22%

Summary

Gulfport Energy beats Murphy Oil on 9 of the 16 factors compared between the two stocks.

Gulfport Energy Company Profile

Gulfport Energy Corporation engages in the acquisition, exploration, exploitation, and production of natural gas, crude oil, and natural gas liquids (NGLs) in the United States. Its principal properties are located in the Utica Shale primarily in Eastern Ohio; and the SCOOP Woodford and SCOOP Springer plays in Oklahoma. The company also holds an acreage position along the Louisiana Gulf Coast in the West Cote Blanche Bay, and Hackberry fields, as well as an acreage position in the Alberta oil sands in Canada. In addition, it owns interests in the Niobrara Formation in Northwestern Colorado; the Bakken Formation in Western North Dakota and Eastern Montana; and the Phu Horm field in northeast Thailand. As of December 31, 2017, it had 5.4 Tcfe of proved reserves; and proved undeveloped reserves of 8,912 thousands of barrels (MBbls) of oil, 3,208,380 MMcf of natural gas, and 39,519 MBbls of NGLs. The company was founded in 1997 and is headquartered in Oklahoma City, Oklahoma.

Murphy Oil Company Profile

Murphy Oil Corporation (Murphy) is an oil and gas exploration and production company. The Company’s exploration and production business explores for and produces crude oil, natural gas and natural gas liquids across the world. Its exploration and production activities are subdivided into four geographic segments: the United States, Canada, Malaysia and all other countries. It explores for and produces crude oil, natural gas and natural gas liquids around the world. This business maintains upstream operating offices in several locations around the world, including Houston, Texas, Calgary, Alberta, and Kuala Lumpur, Malaysia. As of December 31, 2016, Murphy’s principal exploration and production activities were conducted in the United States by Murphy Exploration & Production Company-USA (Murphy Expro USA), in Malaysia, Australia, Brunei, and Vietnam by Murphy Exploration & Production Company-International (Murphy Expro International) and its subsidiaries, and in Western Canada.

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