Gran Tierra Energy (NYSE:GTE – Get Free Report) and Magnolia Oil & Gas (NYSE:MGY – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Risk and Volatility
Gran Tierra Energy has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
Profitability
This table compares Gran Tierra Energy and Magnolia Oil & Gas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gran Tierra Energy | 7.17% | 11.36% | 3.28% |
| Magnolia Oil & Gas | 28.77% | 21.04% | 14.46% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gran Tierra Energy | $638.42 million | 0.60 | -$6.29 million | ($7.25) | -1.49 |
| Magnolia Oil & Gas | $1.31 billion | 5.01 | $325.25 million | $2.28 | 12.16 |
Magnolia Oil & Gas has higher revenue and earnings than Gran Tierra Energy. Gran Tierra 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.
Insider and Institutional Ownership
31.7% of Gran Tierra Energy shares are owned by institutional investors. Comparatively, 94.7% of Magnolia Oil & Gas shares are owned by institutional investors. 5.8% of Gran Tierra Energy shares are owned by insiders. Comparatively, 0.9% 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 company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for Gran Tierra Energy and Magnolia Oil & Gas, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gran Tierra Energy | 0 | 0 | 2 | 1 | 3.33 |
| Magnolia Oil & Gas | 0 | 7 | 10 | 1 | 2.67 |
Gran Tierra Energy currently has a consensus price target of $9.72, suggesting a potential downside of 9.87%. Magnolia Oil & Gas has a consensus price target of $31.71, suggesting a potential upside of 14.35%. Given Magnolia Oil & Gas’ higher possible upside, analysts plainly believe Magnolia Oil & Gas is more favorable than Gran Tierra Energy.
Summary
Magnolia Oil & Gas beats Gran Tierra Energy on 12 of the 14 factors compared between the two stocks.
About Gran Tierra Energy
Gran Tierra Energy Inc., together with its subsidiaries, engages in the exploration and production of oil and gas properties in Colombia and Ecuador. The company was founded in 2003 and is headquartered in Calgary, Canada.
About Magnolia Oil & Gas
Magnolia Oil & Gas Corp. engages in the acquisition, development, exploration, and production of oil and natural gas properties. It operates assets located in the Eagle Ford Shale and Austin Chalk formations in South Texas. The company was founded on February 14, 2017 and is headquartered in Houston, TX.
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