Financial Survey: Magnolia Oil & Gas (NYSE:MGY) vs. Carbon Energy (OTCMKTS:CRBO)

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

Insider and Institutional Ownership

94.7% of Magnolia Oil & Gas shares are owned by institutional investors. 7.1% of Carbon Energy shares are owned by insiders. Comparatively, 1.2% of Magnolia Oil & Gas shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Carbon Energy	N/A	N/A	N/A
Magnolia Oil & Gas	28.88%	20.78%	14.19%

Analyst Ratings

This is a summary of current ratings and price targets for Carbon Energy and Magnolia Oil & Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carbon Energy	0	0	0	0	0.00
Magnolia Oil & Gas	2	5	6	0	2.31

Magnolia Oil & Gas has a consensus target price of $27.58, indicating a potential upside of 20.50%. Given Magnolia Oil & Gas’ stronger consensus rating and higher probable upside, analysts clearly believe Magnolia Oil & Gas is more favorable than Carbon Energy.

Earnings & Valuation

This table compares Carbon Energy 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
Carbon Energy	N/A	N/A	N/A	N/A	N/A
Magnolia Oil & Gas	$1.31 billion	3.43	$388.30 million	$2.02	11.33

Magnolia Oil & Gas has higher revenue and earnings than Carbon Energy.

Volatility & Risk

Carbon Energy has a beta of -1.65, meaning that its stock price is 265% less 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.

Summary

Magnolia Oil & Gas beats Carbon Energy on 9 of the 10 factors compared between the two stocks.

About Carbon Energy

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. It owns working interests and royalty interests in wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.

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.