Centennial Resource Development (NASDAQ:CDEV) and Magnolia Oil & Gas (NYSE:MGY) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Institutional & Insider Ownership
53.7% of Centennial Resource Development shares are owned by institutional investors. Comparatively, 69.3% of Magnolia Oil & Gas shares are owned by institutional investors. 31.9% of Centennial Resource Development shares are owned by company insiders. Comparatively, 5.6% of Magnolia Oil & Gas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Centennial Resource Development has a beta of 6.82, meaning that its share price is 582% more volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 2.72, meaning that its share price is 172% more volatile than the S&P 500.
Earnings & Valuation
This table compares Centennial Resource Development and Magnolia Oil & Gas' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Centennial Resource Development | $944.33 million | 1.25 | $15.80 million | $0.19 | 22.32 |
Magnolia Oil & Gas | $936.14 million | 3.03 | $50.20 million | $0.30 | 38.83 |
Magnolia Oil & Gas has lower revenue, but higher earnings than Centennial Resource Development. Centennial Resource Development 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 Centennial Resource Development and Magnolia Oil & Gas' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Centennial Resource Development | -84.87% | -6.02% | -4.11% |
Magnolia Oil & Gas | -199.68% | -1.06% | -0.71% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Centennial Resource Development and Magnolia Oil & Gas, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Centennial Resource Development | 4 | 6 | 2 | 0 | 1.83 |
Magnolia Oil & Gas | 0 | 6 | 7 | 0 | 2.54 |
Centennial Resource Development presently has a consensus target price of $1.4357, suggesting a potential downside of 66.14%. Magnolia Oil & Gas has a consensus target price of $9.2083, suggesting a potential downside of 20.96%. Given Magnolia Oil & Gas' stronger consensus rating and higher probable upside, analysts plainly believe Magnolia Oil & Gas is more favorable than Centennial Resource Development.
Summary
Magnolia Oil & Gas beats Centennial Resource Development on 10 of the 14 factors compared between the two stocks.