Head-To-Head Survey: MEG Energy (OTCMKTS:MEGEF) and World Kinect (NYSE:WKC)

MEG Energy (OTCMKTS:MEGEF) and World Kinect (NYSE:WKC) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Valuation and Earnings

This table compares MEG Energy and World Kinect”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MEG Energy	N/A	N/A	N/A	($0.46)	-47.24
World Kinect	$36.92 billion	0.05	-$614.40 million	($3.21)	-11.09

MEG Energy has higher earnings, but lower revenue than World Kinect. MEG Energy is trading at a lower price-to-earnings ratio than World Kinect, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for MEG Energy and World Kinect, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MEG Energy	1	0	0	0	1.00
World Kinect	2	0	0	1	2.00

World Kinect has a consensus price target of $30.00, indicating a potential downside of 15.75%. Given World Kinect’s stronger consensus rating and higher probable upside, analysts plainly believe World Kinect is more favorable than MEG Energy.

Profitability

This table compares MEG Energy and World Kinect’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MEG Energy	N/A	N/A	N/A
World Kinect	-0.43%	11.24%	2.40%

Institutional and Insider Ownership

50.5% of MEG Energy shares are held by institutional investors. Comparatively, 97.1% of World Kinect shares are held by institutional investors. 3.8% of World Kinect shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

World Kinect beats MEG Energy on 9 of the 11 factors compared between the two stocks.

About MEG Energy

MEG Energy Corp., an energy company, focuses on sustainable in situ thermal oil production in its Christina Lake Project in the southern Athabasca oil region of Alberta, Canada. The company develops oil recovery projects that utilize steam-assisted gravity drainage extraction methods to improve the recovery of oil, as well as lower carbon emissions. It also transports and sells thermal oil in North America and internationally. The company was incorporated in 1999 and is headquartered in Calgary, Canada.

About World Kinect

World Kinect Corporation operates as an energy management company in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This segment also offers fuel management, price risk management, ground handling, dispatch services, and trip planning services, such as flight planning and scheduling, weather reports and overflight permits; payment and processing services; and operates a web-based marketplace platform. The Land segment offers fuel, lubricants, heating oil, and related products and services to retail petroleum operators, as well as industrial, commercial, residential and government customers. This segment also provides sustainability solutions, such as renewable fuel products, carbon management, and renewable energy solutions; distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores, and retail fuel outlets operated by third parties; distributes heating oil and unbranded fuel; and transportation logistics. The Marine segment markets fuel, lubricants, and related products and services to international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments, and other fuel suppliers. This segment also offers marine fuel-related services include management services to procurement of fuel, price risk management, cost control, quality control, and claims management services; and engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in June 2023. World Kinect Corporation was incorporated in 1984 and is headquartered in Miami, Florida.