Magellan Petroleum Corporation (NASDAQ: TELL) and Parsley Energy (NYSE:PE) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk and Volatility

Magellan Petroleum Corporation has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Parsley Energy has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500.

Valuation and Earnings

This table compares Magellan Petroleum Corporation and Parsley Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Magellan Petroleum Corporation N/A N/A -$163.07 million N/A N/A
Parsley Energy $702.95 million 8.90 $501.07 million $0.11 229.64

Parsley Energy has higher revenue and earnings than Magellan Petroleum Corporation.

Analyst Recommendations

This is a summary of recent ratings for Magellan Petroleum Corporation and Parsley Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magellan Petroleum Corporation 0 0 0 0 N/A
Parsley Energy 0 1 19 0 2.95

Parsley Energy has a consensus price target of $40.45, indicating a potential upside of 60.13%. Given Parsley Energy’s higher probable upside, analysts clearly believe Parsley Energy is more favorable than Magellan Petroleum Corporation.

Profitability

This table compares Magellan Petroleum Corporation and Parsley Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magellan Petroleum Corporation N/A -101.56% -85.02%
Parsley Energy 5.23% 1.70% 1.16%

Insider & Institutional Ownership

9.0% of Magellan Petroleum Corporation shares are owned by institutional investors. Comparatively, 98.7% of Parsley Energy shares are owned by institutional investors. 48.3% of Magellan Petroleum Corporation shares are owned by company insiders. Comparatively, 15.5% of Parsley Energy shares are owned by company 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

Parsley Energy beats Magellan Petroleum Corporation on 8 of the 10 factors compared between the two stocks.

Magellan Petroleum Corporation Company Profile

Tellurian Inc., formerly Magellan Petroleum Corporation, is an oil and gas exploration and production company. The Company focuses on the development of liquefied natural gas (LNG) projects along the United States Gulf Coast through its subsidiary, Tellurian Investments Inc. The Company owns interests in the Horse Hill-1 well and related licenses in the Weald Basin, onshore the United Kingdom, and an exploration block, NT/P82, in the Bonaparte Basin, offshore Northern Territory, Australia. The Horse Hill-1 well has identified prospects from the Portland sandstone and Kimmeridge Clay limestone formations.

Parsley Energy Company Profile

Parsley Energy, Inc. is a holding company. The Company is an independent oil and natural gas company. The Company focuses on the acquisition, development and exploitation of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and Southeastern New Mexico and includes three primary sub-areas: the Midland Basin, the Central Basin Platform and the Delaware Basin. The Company’s properties are primarily located in the Midland and Delaware Basins, where it focuses on horizontal development drilling and target various stacked pay intervals in the Spraberry, Wolfcamp, Upper Pennsylvanian (Cline) and Atoka shales. As of December 31, 2016, it had an average working interest of 87% in 166 gross (146.7 net) horizontal wells, of which 151 gross (132.4 net) are in the Midland Basin. As of December 31, 2016, the Company operated seven horizontal rigs and three vertical drilling rigs.

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