Comparing Brigham Minerals (NYSE:MNRL) & Marathon Oil (NYSE:MRO)

Marathon Oil (NYSE:MROGet Rating) and Brigham Minerals (NYSE:MNRLGet Rating) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

79.2% of Marathon Oil shares are owned by institutional investors. Comparatively, 68.8% of Brigham Minerals shares are owned by institutional investors. 0.5% of Marathon Oil shares are owned by company insiders. Comparatively, 3.9% of Brigham Minerals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Marathon Oil pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Brigham Minerals pays an annual dividend of $0.64 per share and has a dividend yield of 2.4%. Marathon Oil pays out 11.1% of its earnings in the form of a dividend. Brigham Minerals pays out 41.8% 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. Marathon Oil has raised its dividend for 2 consecutive years and Brigham Minerals has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for Marathon Oil and Brigham Minerals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marathon Oil 1 3 9 1 2.71
Brigham Minerals 0 1 2 1 3.00

Marathon Oil presently has a consensus price target of $30.40, indicating a potential upside of 11.52%. Brigham Minerals has a consensus price target of $31.40, indicating a potential upside of 17.12%. Given Brigham Minerals’ stronger consensus rating and higher probable upside, analysts plainly believe Brigham Minerals is more favorable than Marathon Oil.

Profitability

This table compares Marathon Oil and Brigham Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marathon Oil 35.01% 16.78% 10.43%
Brigham Minerals 36.54% 10.56% 9.36%

Valuation & Earnings

This table compares Marathon Oil and Brigham Minerals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marathon Oil $5.47 billion 3.53 $946.00 million $2.87 9.50
Brigham Minerals $161.22 million 10.06 $50.28 million $1.53 17.52

Marathon Oil has higher revenue and earnings than Brigham Minerals. Marathon Oil is trading at a lower price-to-earnings ratio than Brigham Minerals, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Marathon Oil has a beta of 2.58, suggesting that its share price is 158% more volatile than the S&P 500. Comparatively, Brigham Minerals has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.

Summary

Marathon Oil beats Brigham Minerals on 9 of the 16 factors compared between the two stocks.

Marathon Oil Company Profile (Get Rating)

Marathon Oil Corporation operates as an independent exploration and production company in the United States and internationally. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol. It also owns and operates 32 central gathering and treating facilities; and the Sugarloaf gathering system, a 42-mile natural gas pipeline through Karnes and Atascosa Counties. The company was formerly known as USX Corporation and changed its name to Marathon Oil Corporation in December 2001. Marathon Oil Corporation was founded in 1887 and is headquartered in Houston, Texas.

Brigham Minerals Company Profile (Get Rating)

Brigham Minerals, Inc. owns and operates a portfolio of mineral and royalty interests in the continental United States. The company primarily holds mineral and royalty interests in the Delaware and Midland Basins in West Texas and New Mexico; the South Central Oklahoma Oil Province and Sooner Trend Anadarko Basin Canadian and Kingfisher Counties plays in the Anadarko Basin of Oklahoma; the Denver-Julesburg Basin in Colorado; and Wyoming and the Williston Basin in North Dakota. As of December 31, 2021, it had mineral and royalty interests in approximately 92,375 net royalty acres; and owned mineral and royalty interests in 8,595 gross productive horizontal wells, which consisted of 7,909 oil wells and 688 natural gas wells. The company was founded in 2012 and is headquartered in Austin, Texas.

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