Contrasting Murphy Oil (NYSE:MUR) and Allied Resources (OTCMKTS:ALOD)

Murphy Oil (NYSE:MUR) and Allied Resources (OTCMKTS:ALOD) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Valuation and Earnings

This table compares Murphy Oil and Allied Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Murphy Oil	$3.03 billion	1.49	$407.17 million	$0.98	32.19
Allied Resources	$160,000.00	8.79	-$170,000.00	($0.02)	-12.45

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

Profitability

This table compares Murphy Oil and Allied Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Murphy Oil	5.16%	4.30%	2.34%
Allied Resources	-48.13%	-5.42%	-4.25%

Insider & Institutional Ownership

78.3% of Murphy Oil shares are owned by institutional investors. 6.5% of Murphy Oil shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Murphy Oil has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Allied Resources has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Murphy Oil and Allied Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murphy Oil	2	13	0	0	1.87
Allied Resources	0	0	0	0	0.00

Murphy Oil currently has a consensus price target of $29.08, indicating a potential downside of 7.79%. Given Murphy Oil’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Murphy Oil is more favorable than Allied Resources.

Summary

Murphy Oil beats Allied Resources on 12 of the 13 factors compared between the two stocks.

About Murphy Oil

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.

About Allied Resources

Allied Resources, Inc., an independent oil and natural gas producer, engages in the exploration, development, production, and sale of oil and gas in the United States. It owns varying interests in a total of 145 wells situated on acreage of approximately 3,400 acres in Ritchie and Calhoun counties, West Virginia; and 10 wells situated on acreage of approximately 2,510 acres in Goliad, Edwards, and Jackson counties, Texas. The company was formerly known as General Allied Oil and Gas Co and changed its name to Allied Resources, Inc. in August 1998. Allied Resources, Inc. was founded in 1979 and is based in Salt Lake City, Utah.