Head-To-Head Review: Magnolia Oil & Gas (NYSE:MGY) versus RWE Aktiengesellschaft (OTCMKTS:RWEOY)

RWE Aktiengesellschaft (OTCMKTS:RWEOY) and Magnolia Oil & Gas (NYSE:MGY) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Institutional and Insider Ownership

94.7% of Magnolia Oil & Gas shares are held by institutional investors. 1.2% of Magnolia Oil & Gas shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares RWE Aktiengesellschaft and Magnolia Oil & Gas”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RWE Aktiengesellschaft	$30.91 billion	0.80	$1.57 billion	$5.82	6.26
Magnolia Oil & Gas	$1.35 billion	3.20	$388.30 million	$2.01	11.12

RWE Aktiengesellschaft has higher revenue and earnings than Magnolia Oil & Gas. RWE Aktiengesellschaft is trading at a lower price-to-earnings ratio than Magnolia Oil & Gas, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for RWE Aktiengesellschaft and Magnolia Oil & Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RWE Aktiengesellschaft	0	0	1	1	3.50
Magnolia Oil & Gas	2	8	5	0	2.20

Magnolia Oil & Gas has a consensus target price of $27.14, suggesting a potential upside of 21.39%. Given Magnolia Oil & Gas’ higher probable upside, analysts clearly believe Magnolia Oil & Gas is more favorable than RWE Aktiengesellschaft.

Risk & Volatility

RWE Aktiengesellschaft has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Dividends

RWE Aktiengesellschaft pays an annual dividend of $0.87 per share and has a dividend yield of 2.4%. Magnolia Oil & Gas pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. RWE Aktiengesellschaft pays out 14.9% of its earnings in the form of a dividend. Magnolia Oil & Gas pays out 29.9% 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. Magnolia Oil & Gas has raised its dividend for 3 consecutive years. Magnolia Oil & Gas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RWE Aktiengesellschaft	12.03%	8.16%	2.75%
Magnolia Oil & Gas	27.82%	20.74%	14.23%

Summary

Magnolia Oil & Gas beats RWE Aktiengesellschaft on 12 of the 18 factors compared between the two stocks.

About RWE Aktiengesellschaft

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.

About Magnolia Oil & Gas

Magnolia Oil & Gas Corp. engages in the acquisition, development, exploration, and production of oil and natural gas properties. It operates assets located in the Eagle Ford Shale and Austin Chalk formations in South Texas. The company was founded on February 14, 2017 and is headquartered in Houston, TX.