Comparing Magnolia Oil & Gas (NYSE:MGY) and U.S. Energy (NASDAQ:USEG)

Magnolia Oil & Gas (NYSE:MGY) and U.S. Energy (NASDAQ:USEG) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Volatility & Risk

Magnolia Oil & Gas has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, U.S. Energy has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Institutional & Insider Ownership

94.7% of Magnolia Oil & Gas shares are owned by institutional investors. Comparatively, 3.0% of U.S. Energy shares are owned by institutional investors. 0.9% of Magnolia Oil & Gas shares are owned by insiders. Comparatively, 61.0% of U.S. Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Magnolia Oil & Gas and U.S. Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnolia Oil & Gas	24.79%	16.67%	11.53%
U.S. Energy	-240.93%	-70.53%	-38.35%

Valuation & Earnings

This table compares Magnolia Oil & Gas and U.S. Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnolia Oil & Gas	$1.31 billion	4.15	$325.25 million	$1.72	17.00
U.S. Energy	$20.62 million	2.00	-$25.78 million	($0.83)	-1.39

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.

Analyst Ratings

This is a summary of recent ratings for Magnolia Oil & Gas and U.S. Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnolia Oil & Gas	0	9	8	0	2.47
U.S. Energy	1	0	1	0	2.00

Magnolia Oil & Gas presently has a consensus price target of $28.18, suggesting a potential downside of 3.62%. U.S. Energy has a consensus price target of $3.50, suggesting a potential upside of 204.35%. Given U.S. Energy’s higher possible upside, analysts clearly believe U.S. Energy is more favorable than Magnolia Oil & Gas.

Summary

Magnolia Oil & Gas beats U.S. Energy on 12 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 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.