Cenovus Energy (NYSE:CVE – Get Free Report) and Magnolia Oil & Gas (NYSE:MGY – Get Free Report) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Dividends
Cenovus Energy pays an annual dividend of $0.53 per share and has a dividend yield of 3.0%. Magnolia Oil & Gas pays an annual dividend of $0.52 per share and has a dividend yield of 1.9%. Cenovus Energy pays out 29.4% of its earnings in the form of a dividend. Magnolia Oil & Gas pays out 25.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Risk and Volatility
Cenovus Energy has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cenovus Energy | 0 | 1 | 5 | 0 | 2.83 |
| Magnolia Oil & Gas | 2 | 4 | 6 | 0 | 2.33 |
Cenovus Energy presently has a consensus price target of $30.75, suggesting a potential upside of 74.82%. Magnolia Oil & Gas has a consensus price target of $27.27, suggesting a potential upside of 1.95%. Given Cenovus Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Cenovus Energy is more favorable than Magnolia Oil & Gas.
Valuation & Earnings
This table compares Cenovus Energy and Magnolia Oil & Gas”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cenovus Energy | $59.64 billion | 0.55 | $3.04 billion | $1.80 | 9.77 |
| Magnolia Oil & Gas | $1.29 billion | 4.19 | $388.30 million | $2.01 | 13.31 |
Cenovus Energy has higher revenue and earnings than Magnolia Oil & Gas. Cenovus 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.
Profitability
This table compares Cenovus Energy and Magnolia Oil & Gas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cenovus Energy | 8.56% | 16.61% | 8.73% |
| Magnolia Oil & Gas | 29.44% | 21.18% | 14.45% |
Insider & Institutional Ownership
51.2% of Cenovus Energy shares are held by institutional investors. Comparatively, 94.7% of Magnolia Oil & Gas shares are held by institutional investors. 1.2% of Magnolia Oil & Gas shares are held by 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.
Summary
Magnolia Oil & Gas beats Cenovus Energy on 10 of the 16 factors compared between the two stocks.
About Cenovus Energy
Cenovus Energy Inc., together with its subsidiaries, develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally. The company operates through Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining segments. The Oil Sands segment develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. This segment assets include Foster Creek, Christina Lake, and Sunrise projects, as well as Lloydminster thermal and conventional heavy oil assets. The Conventional segment holds natural gas liquids and natural gas assets primarily located in Elmworth-Wapiti, Kaybob-Edson, Clearwater, and Rainbow Lake operating in Alberta and British Columbia, as well as interests in various natural gas processing facilities. The offshore segment engages in offshore operation, exploration, and development activities in China and the East Coast of Canada. The Canadian Refining segment owns and operates Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt, and other ancillary products, as well as Bruderheim crude-by-rail terminal and ethanol plants. The U.S. Refining segment refines crude oil to produce gasoline, diesel, jet fuel, asphalt, and other products. Cenovus Energy Inc. is headquartered in Calgary, Canada.
About Magnolia Oil & Gas
Magnolia Oil & Gas Corporation, an independent oil and natural gas company, engages in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States. Its properties are located primarily in Karnes County and the Giddings area in South Texas principally comprising the Eagle Ford Shale and the Austin Chalk formation. The company was incorporated in 2017 and is headquartered in Houston, Texas.
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