U.S. Energy (NASDAQ:USEG – Get Free Report) and Magnolia Oil & Gas (NYSE:MGY – Get Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.
Volatility & Risk
U.S. Energy has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Institutional and Insider Ownership
3.0% of U.S. Energy shares are owned by institutional investors. Comparatively, 94.7% of Magnolia Oil & Gas shares are owned by institutional investors. 61.0% of U.S. Energy 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| U.S. Energy | 1 | 0 | 1 | 0 | 2.00 |
| Magnolia Oil & Gas | 0 | 9 | 8 | 0 | 2.47 |
U.S. Energy presently has a consensus target price of $3.50, suggesting a potential upside of 224.07%. Magnolia Oil & Gas has a consensus target price of $28.18, suggesting a potential downside of 1.93%. Given U.S. Energy’s higher probable upside, research analysts plainly believe U.S. Energy is more favorable than Magnolia Oil & Gas.
Valuation & Earnings
This table compares U.S. Energy and Magnolia Oil & Gas”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| U.S. Energy | $20.62 million | 1.88 | -$25.78 million | ($0.83) | -1.30 |
| Magnolia Oil & Gas | $1.31 billion | 4.08 | $325.25 million | $1.72 | 16.71 |
Magnolia Oil & Gas has higher revenue and earnings than U.S. Energy. U.S. 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 U.S. Energy and Magnolia Oil & Gas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| U.S. Energy | -240.93% | -70.53% | -38.35% |
| Magnolia Oil & Gas | 24.79% | 16.67% | 11.53% |
Summary
Magnolia Oil & Gas beats U.S. Energy on 12 of the 14 factors compared between the two stocks.
About U.S. Energy
U.S. Energy Corp., an independent energy company, focuses on the acquisition, exploration, and development of oil and natural gas properties in the United States. It holds interests in various oil and gas properties located in the Rockies region, including Montana, Wyoming, and North Dakota; the Mid-Continent region comprising Oklahoma, Kansas, and North and East Texas; West Texas; South Texas; and the Gulf Coast regions. The company was incorporated in 1966 and is headquartered in Houston, 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.
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