Critical Contrast: Penn Virginia (PVAC) vs. Magnolia Oil & Gas (MGY)

Penn Virginia (NASDAQ:PVAC) and Magnolia Oil & Gas (NYSE:MGY) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Penn Virginia and Magnolia Oil & Gas’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Penn Virginia $160.05 million 6.23 $32.66 million $2.88 22.99
Magnolia Oil & Gas N/A N/A $1.53 million N/A N/A

Penn Virginia has higher revenue and earnings than Magnolia Oil & Gas.

Profitability

This table compares Penn Virginia and Magnolia Oil & Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Penn Virginia -3.23% 36.88% 11.81%
Magnolia Oil & Gas N/A -72.26% -0.55%

Institutional and Insider Ownership

97.8% of Penn Virginia shares are owned by institutional investors. Comparatively, 25.8% of Magnolia Oil & Gas shares are owned by institutional investors. 0.4% of Penn Virginia shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Penn Virginia and Magnolia Oil & Gas, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penn Virginia 0 0 3 0 3.00
Magnolia Oil & Gas 0 0 3 0 3.00

Penn Virginia currently has a consensus target price of $93.67, suggesting a potential upside of 41.47%. Magnolia Oil & Gas has a consensus target price of $18.00, suggesting a potential upside of 46.46%. Given Magnolia Oil & Gas’ higher probable upside, analysts plainly believe Magnolia Oil & Gas is more favorable than Penn Virginia.

Risk and Volatility

Penn Virginia has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Summary

Penn Virginia beats Magnolia Oil & Gas on 7 of the 9 factors compared between the two stocks.

Penn Virginia Company Profile

Penn Virginia Corporation, an independent oil and gas company, engages in the onshore exploration, development, and production of crude oil, natural gas liquids, and natural gas in the United States. It primarily operates wells in the Eagle Ford Shale field in South Texas. The company also has operations in the Granite Wash in Oklahoma. As of December 31, 2017, it had total proved reserves of approximately 73 million barrels of oil equivalent; and 500 gross productive wells, as well as owned approximately 124,000 gross acres of leasehold and royalty interests. Penn Virginia Corporation was founded in 1882 and is headquartered in Houston, Texas.

Magnolia Oil & Gas Company Profile

Magnolia Oil & Gas Corporation operates as an oil and gas exploration and production company. It has operations in South Texas in the core of the Eagle Ford. The company is headquartered in Houston, Texas.

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