Magnolia Oil & Gas (NYSE:MGY – Get Free Report) and Talos Energy (NYSE:TALO – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
Risk & Volatility
Magnolia Oil & Gas has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Talos Energy has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.
Insider & Institutional Ownership
94.7% of Magnolia Oil & Gas shares are owned by institutional investors. Comparatively, 89.4% of Talos Energy shares are owned by institutional investors. 0.9% of Magnolia Oil & Gas shares are owned by insiders. Comparatively, 0.4% of Talos Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magnolia Oil & Gas | 2 | 8 | 4 | 0 | 2.14 |
| Talos Energy | 0 | 2 | 6 | 0 | 2.75 |
Magnolia Oil & Gas currently has a consensus target price of $26.67, suggesting a potential upside of 14.30%. Talos Energy has a consensus target price of $14.25, suggesting a potential upside of 49.68%. Given Talos Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Talos Energy is more favorable than Magnolia Oil & Gas.
Valuation and Earnings
This table compares Magnolia Oil & Gas and Talos Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Magnolia Oil & Gas | $1.33 billion | 3.35 | $366.03 million | $1.91 | 12.21 |
| Talos Energy | $1.97 billion | 0.84 | -$76.39 million | ($0.97) | -9.81 |
Magnolia Oil & Gas has higher earnings, but lower revenue than Talos Energy. Talos Energy 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.
Profitability
This table compares Magnolia Oil & Gas and Talos Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Magnolia Oil & Gas | 27.57% | 19.34% | 13.47% |
| Talos Energy | -8.91% | -2.34% | -1.03% |
Summary
Magnolia Oil & Gas beats Talos Energy on 10 of the 14 factors compared between the two stocks.
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.
About Talos Energy
Talos Energy Inc., through its subsidiaries, engages in the exploration and production of oil, natural gas, and natural gas liquids in the United States and Mexico. It also engages in the development of carbon capture and sequestration. Talos Energy Inc. was founded in 2011 and is headquartered in Houston, Texas.
Receive News & Ratings for Magnolia Oil & Gas Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Magnolia Oil & Gas and related companies with MarketBeat.com's FREE daily email newsletter.
