Comparing Murphy USA (NYSE:MUSA) and Stage Stores (OTCMKTS:SSINQ)

Stage Stores (OTCMKTS:SSINQ) and Murphy USA (NYSE:MUSA) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Earnings & Valuation

This table compares Stage Stores and Murphy USA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stage Stores	N/A	N/A	N/A	N/A	N/A
Murphy USA	$19.38 billion	0.48	$470.60 million	$32.84	15.32

Murphy USA has higher revenue and earnings than Stage Stores.

Analyst Recommendations

This is a summary of current ratings for Stage Stores and Murphy USA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stage Stores	0	0	0	0	0.00
Murphy USA	0	5	6	0	2.55

Murphy USA has a consensus price target of $606.89, suggesting a potential upside of 20.66%. Given Murphy USA’s stronger consensus rating and higher probable upside, analysts clearly believe Murphy USA is more favorable than Stage Stores.

Profitability

This table compares Stage Stores and Murphy USA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stage Stores	N/A	N/A	N/A
Murphy USA	2.87%	96.01%	12.95%

Insider & Institutional Ownership

80.8% of Murphy USA shares are held by institutional investors. 11.6% of Stage Stores shares are held by insiders. Comparatively, 9.0% of Murphy USA shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Murphy USA beats Stage Stores on 8 of the 9 factors compared between the two stocks.

About Stage Stores

Stage Stores, Inc. operates specialty department stores primarily in small towns and rural communities in the United States. The company sells moderately priced and brand name apparel, accessories, cosmetics, footwear, and home goods through its department stores, off-price stores, and e-commerce Website, as well as through private label credit card and loyalty programs. As of September 17, 2019, it operated 625 BEALLS, GOODY'S, PALAIS ROYAL, PEEBLES, and STAGE specialty department stores; and 158 GORDMANS off-price stores. The company was founded in 1988 and is headquartered in Houston, Texas. On May 10, 2020, Stage Stores, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. The plan was later approved as Chapter 11 liquidation on August 14, 2020.

About Murphy USA

Murphy USA Inc. engages in marketing of retail motor fuel products and convenience merchandise. The company operates retail stores under the Murphy USA, Murphy Express, and QuickChek brands, as well as operates non-fuel convenience stores. It operates retail gasoline stores principally in the Southeast, Southwest, and Midwest United States. Murphy USA Inc. was founded in 1996 and is headquartered in El Dorado, Arkansas.