Comparing MV Oil Trust (MVO) and WPX Energy (WPX)
MV Oil Trust (NYSE: MVO) and WPX Energy (NYSE:WPX) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Risk & Volatility
MV Oil Trust has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, WPX Energy has a beta of 2.41, meaning that its share price is 141% more volatile than the S&P 500.
Valuation & Earnings
This table compares MV Oil Trust and WPX Energy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MV Oil Trust||$8.20 million||7.70||$7.36 million||$0.64||8.58|
|WPX Energy||$1.00 billion||4.36||$569.00 million||($0.83)||-13.22|
WPX Energy has higher revenue and earnings than MV Oil Trust. WPX Energy is trading at a lower price-to-earnings ratio than MV Oil Trust, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
9.8% of MV Oil Trust shares are held by institutional investors. Comparatively, 97.7% of WPX Energy shares are held by institutional investors. 1.4% of WPX Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares MV Oil Trust and WPX Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MV Oil Trust||89.71%||N/A||38.19%|
This is a breakdown of recent ratings for MV Oil Trust and WPX Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MV Oil Trust||0||0||0||0||N/A|
WPX Energy has a consensus target price of $15.62, indicating a potential upside of 42.37%. Given WPX Energy’s higher possible upside, analysts plainly believe WPX Energy is more favorable than MV Oil Trust.
MV Oil Trust pays an annual dividend of $0.50 per share and has a dividend yield of 9.1%. WPX Energy does not pay a dividend. MV Oil Trust pays out 78.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
WPX Energy beats MV Oil Trust on 8 of the 14 factors compared between the two stocks.
MV Oil Trust Company Profile
MV Oil Trust (the Trust) is a statutory trust. The Trust acquires and holds a term net profits interest for the benefit of the Trust unitholders. Its underlying properties consist of MV Partners, LLC’s (MV Partners) net interests in all of its oil and natural gas properties, which are located in the Mid-Continent region in the States of Kansas and Colorado. These oil and gas properties include approximately 1,000 producing oil and gas wells. The underlying properties located in the El Dorado Area are operated on behalf of MV Partners by Vess Oil Corporation (Vess Oil) and are located in the El Dorado, Augusta and Valley Center Fields. Each of Vess Oil and Murfin Drilling Company, Inc. (Murfin Drilling) operate leases on behalf of MV Partners included in the underlying properties that are located in the Northwest Kansas Area. The primary fields in this area are the Bemis-Shutts, Trapp, Ray and Hansen Fields.
WPX Energy Company Profile
WPX Energy, Inc. is an oil and natural gas exploration and production company. The Company is engaged in the exploitation and development of unconventional properties. It operates in the exploration and production segment of the oil and gas industry and its operations are conducted in the United States. It is focused on exploiting, developing and growing its oil positions in the Delaware (a subset of the Permian Basin) and San Juan Basins in the southwestern United States and the Williston Basin in North Dakota. As of December 31, 2016, it operated 642 wells in the Delaware Basin and also owned interests in 783 wells operated by others. As of December 31, 2016, it held approximately 98,000 acres in the Delaware Basin, with operations located in Eddy, Lea and Chaves Counties in New Mexico and Loving, Pecos, Reeves, Ward and Winkler Counties in Texas. Its activity in the Delaware Basin is focused on the Wolfcamp Shale formation, the Bone Spring interval and the Delaware sand interval.
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