Frontline (NYSE:FRO) versus Magnolia Oil & Gas (NYSE:MGY) Head to Head Survey

Frontline (NYSE:FRO – Get Free Report) and Magnolia Oil & Gas (NYSE:MGY – Get Free Report) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Dividends

Frontline pays an annual dividend of $10.44 per share and has a dividend yield of 19.8%. Magnolia Oil & Gas pays an annual dividend of $0.72 per share and has a dividend yield of 3.0%. Frontline pays out 156.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Magnolia Oil & Gas pays out 31.6% of its earnings in the form of a dividend. Magnolia Oil & Gas has raised its dividend for 3 consecutive years.

Risk & Volatility

Frontline has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Institutional and Insider Ownership

22.7% of Frontline shares are held by institutional investors. Comparatively, 94.7% of Magnolia Oil & Gas shares are held by institutional investors. 48.1% of Frontline shares are held by company insiders. Comparatively, 0.9% of Magnolia Oil & Gas shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Frontline 49.47% 44.24% 20.89%
Magnolia Oil & Gas 28.77% 21.04% 14.46%

Earnings & Valuation

This table compares Frontline and Magnolia Oil & Gas”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Frontline $1.97 billion 5.95 $379.08 million $6.67 7.90
Magnolia Oil & Gas $1.48 billion 3.85 $325.25 million $2.28 10.54

Frontline has higher revenue and earnings than Magnolia Oil & Gas. Frontline 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 and target prices for Frontline and Magnolia Oil & Gas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Frontline 2 5 4 0 2.18
Magnolia Oil & Gas 0 5 11 2 2.83

Frontline presently has a consensus price target of $45.37, indicating a potential downside of 13.96%. Magnolia Oil & Gas has a consensus price target of $31.88, indicating a potential upside of 32.64%. Given Magnolia Oil & Gas’ stronger consensus rating and higher probable upside, analysts plainly believe Magnolia Oil & Gas is more favorable than Frontline.

About Frontline

(Get Free Report)

Frontline plc, a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2022, the company operated a fleet of 70 vessels. It is also involved in the charter, purchase, and sale of vessels. The company was founded in 1985 and is based in Limassol, Cyprus.

About Magnolia Oil & Gas

(Get Free Report)

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.

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