Murphy Oil (NYSE:MUR) versus Zion Oil & Gas (OTCMKTS:ZNOG) Head to Head Contrast

Murphy Oil (NYSE:MUR) and Zion Oil & Gas (OTCMKTS:ZNOG) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Volatility and Risk

Murphy Oil has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Zion Oil & Gas has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Institutional & Insider Ownership

78.3% of Murphy Oil shares are held by institutional investors. Comparatively, 7.9% of Zion Oil & Gas shares are held by institutional investors. 6.5% of Murphy Oil shares are held by insiders. Comparatively, 2.7% of Zion Oil & Gas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Murphy Oil and Zion Oil & Gas’ 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%
Zion Oil & Gas	N/A	-19.89%	-18.12%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Murphy Oil and Zion Oil & Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murphy Oil	2	13	0	0	1.87
Zion Oil & Gas	0	0	0	0	0.00

Murphy Oil currently has a consensus target price of $29.75, suggesting a potential downside of 11.56%. Given Murphy Oil’s stronger consensus rating and higher possible upside, analysts clearly believe Murphy Oil is more favorable than Zion Oil & Gas.

Valuation and Earnings

This table compares Murphy Oil and Zion Oil & Gas”s gross 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	1.59	$407.17 million	$0.98	34.32
Zion Oil & Gas	N/A	N/A	-$7.34 million	($1.77)	-0.21

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

Summary

Murphy Oil beats Zion Oil & Gas on 12 of the 12 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 Zion Oil & Gas

Zion Oil & Gas, Inc., together with its subsidiaries, operates as an oil and gas exploration company in Israel. It holds a petroleum exploration license onshore Israel, the New Megiddo License 434 comprising an area of approximately 75,000 acres. The company was incorporated in 2000 and is headquartered in Dallas, Texas.