Head-To-Head Contrast: Granite Ridge Resources (NYSE:GRNT) vs. Magnolia Oil & Gas (NYSE:MGY)

Granite Ridge Resources (NYSE:GRNT) and Magnolia Oil & Gas (NYSE:MGY) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Risk and Volatility

Granite Ridge Resources has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Granite Ridge Resources and Magnolia Oil & Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	0	2	1	0	2.33
Magnolia Oil & Gas	2	7	5	0	2.21

Granite Ridge Resources currently has a consensus price target of $8.00, suggesting a potential upside of 54.89%. Magnolia Oil & Gas has a consensus price target of $26.33, suggesting a potential upside of 15.62%. Given Granite Ridge Resources’ stronger consensus rating and higher possible upside, research analysts plainly believe Granite Ridge Resources is more favorable than Magnolia Oil & Gas.

Dividends

Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 8.5%. Magnolia Oil & Gas pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Granite Ridge Resources pays out 183.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Magnolia Oil & Gas pays out 31.4% of its earnings in the form of a dividend. Magnolia Oil & Gas has increased its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Granite Ridge Resources and Magnolia Oil & Gas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Ridge Resources	$380.03 million	1.78	$18.76 million	$0.24	21.52
Magnolia Oil & Gas	$1.32 billion	3.30	$366.03 million	$1.91	11.92

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

Insider and Institutional Ownership

31.6% of Granite Ridge Resources shares are owned by institutional investors. Comparatively, 94.7% of Magnolia Oil & Gas shares are owned by institutional investors. 8.5% of Granite Ridge Resources shares are owned by company insiders. Comparatively, 0.9% of Magnolia Oil & Gas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Granite Ridge Resources and Magnolia Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	7.47%	13.09%	7.89%
Magnolia Oil & Gas	27.57%	19.34%	13.47%

Summary

Magnolia Oil & Gas beats Granite Ridge Resources on 12 of the 17 factors compared between the two stocks.

About Granite Ridge Resources

Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.

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.