Head to Head Analysis: Magnolia Oil & Gas (NYSE:MGY) versus Par Pacific (NYSE:PARR)

Magnolia Oil & Gas (NYSE:MGY) and Par Pacific (NYSE:PARR) are both mid-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Volatility and Risk

Magnolia Oil & Gas has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Par Pacific has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares Magnolia Oil & Gas and Par Pacific”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnolia Oil & Gas	$1.48 billion	4.02	$325.25 million	$2.28	11.00
Par Pacific	$7.46 billion	0.49	$369.39 million	$17.14	4.22

Par Pacific has higher revenue and earnings than Magnolia Oil & Gas. Par Pacific 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.

Insider and Institutional Ownership

94.7% of Magnolia Oil & Gas shares are owned by institutional investors. Comparatively, 92.2% of Par Pacific shares are owned by institutional investors. 0.9% of Magnolia Oil & Gas shares are owned by company insiders. Comparatively, 3.6% of Par Pacific shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Magnolia Oil & Gas and Par Pacific, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnolia Oil & Gas	0	6	12	1	2.74
Par Pacific	0	4	8	1	2.77

Magnolia Oil & Gas presently has a consensus price target of $31.53, suggesting a potential upside of 25.74%. Par Pacific has a consensus price target of $90.43, suggesting a potential upside of 25.12%. Given Magnolia Oil & Gas’ higher probable upside, equities research analysts clearly believe Magnolia Oil & Gas is more favorable than Par Pacific.

Profitability

This table compares Magnolia Oil & Gas and Par Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnolia Oil & Gas	28.77%	21.04%	14.46%
Par Pacific	9.94%	56.19%	21.61%

Summary

Par Pacific beats Magnolia Oil & Gas on 8 of the 14 factors compared between the two stocks.

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.

About Par Pacific

Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 and is headquartered in Houston, Texas.