Mexco Energy (NYSE:MXC) versus Ovintiv (NYSE:OVV) Head to Head Review

Ovintiv (NYSE:OVV) and Mexco Energy (NYSE:MXC) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Risk & Volatility

Ovintiv has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, Mexco Energy has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ovintiv and Mexco Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ovintiv	0	2	13	2	3.00
Mexco Energy	0	0	0	0	0.00

Ovintiv currently has a consensus price target of $56.06, suggesting a potential upside of 65.79%. Given Ovintiv’s stronger consensus rating and higher possible upside, analysts plainly believe Ovintiv is more favorable than Mexco Energy.

Institutional & Insider Ownership

83.8% of Ovintiv shares are owned by institutional investors. Comparatively, 5.9% of Mexco Energy shares are owned by institutional investors. 1.7% of Ovintiv shares are owned by company insiders. Comparatively, 53.0% of Mexco Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Ovintiv and Mexco Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ovintiv	20.15%	17.87%	9.35%
Mexco Energy	18.73%	7.57%	6.94%

Earnings and Valuation

This table compares Ovintiv and Mexco Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ovintiv	$9.15 billion	0.96	$2.09 billion	$4.20	8.05
Mexco Energy	$7.16 million	1.90	$1.35 million	$0.63	10.58

Ovintiv has higher revenue and earnings than Mexco Energy. Ovintiv is trading at a lower price-to-earnings ratio than Mexco Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Ovintiv beats Mexco Energy on 12 of the 15 factors compared between the two stocks.

About Ovintiv

Ovintiv Inc., together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. The company operates through USA Operations, Canadian Operations, and Market Optimization segments. Its principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. In addition, the company's upstream assets comprise Bakken in northwest North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.

About Mexco Energy

Mexco Energy Corporation, an independent oil and gas company, engages in the acquisition, exploration, development, and production of natural gas, crude oil, condensate, and natural gas liquids in the United States. It owns partial interests in approximately 6,400 gross producing wells located in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio. It also owned leasehold mineral, royalty, and other interests in approximately 2,768 net acres. The company was formerly known as Miller Oil Company and changed its name to Mexco Energy Corporation in April 1980. Mexco Energy Corporation was incorporated in 1972 and is based in Midland, Texas.