Reviewing Magnolia Oil & Gas (NYSE:MGY) and Carbon Energy (OTCMKTS:CRBO)

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

Institutional and Insider Ownership

94.7% of Magnolia Oil & Gas shares are owned by institutional investors. 1.2% of Magnolia Oil & Gas shares are owned by insiders. Comparatively, 7.1% of Carbon Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Magnolia Oil & Gas and Carbon Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnolia Oil & Gas	$1.31 billion	3.43	$388.30 million	$2.02	11.33
Carbon Energy	N/A	N/A	N/A	N/A	N/A

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

Volatility & Risk

Magnolia Oil & Gas has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, Carbon Energy has a beta of -1.65, indicating that its stock price is 265% less volatile than the S&P 500.

Profitability

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

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Magnolia Oil & Gas and Carbon Energy, as reported by MarketBeat.

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

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

Summary

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

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.

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.