Northern Oil and Gas (NYSE:NOG) and Legacy Reserves (OTCMKTS:LGCYQ) Head to Head Review

Northern Oil and Gas (NYSE:NOG) and Legacy Reserves (OTCMKTS:LGCYQ) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Profitability

This table compares Northern Oil and Gas and Legacy Reserves’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Oil and Gas	7.61%	20.61%	8.60%
Legacy Reserves	N/A	N/A	N/A

Earnings and Valuation

This table compares Northern Oil and Gas and Legacy Reserves”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Oil and Gas	$2.23 billion	0.92	$520.31 million	$1.77	11.88
Legacy Reserves	N/A	N/A	N/A	N/A	N/A

Northern Oil and Gas has higher revenue and earnings than Legacy Reserves.

Institutional and Insider Ownership

98.8% of Northern Oil and Gas shares are owned by institutional investors. 2.9% of Northern Oil and Gas shares are owned by insiders. Comparatively, 0.8% of Legacy Reserves shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Northern Oil and Gas and Legacy Reserves, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Oil and Gas	1	5	4	1	2.45
Legacy Reserves	0	0	0	0	0.00

Northern Oil and Gas presently has a consensus target price of $33.25, suggesting a potential upside of 58.09%. Given Northern Oil and Gas’ stronger consensus rating and higher probable upside, analysts clearly believe Northern Oil and Gas is more favorable than Legacy Reserves.

Summary

Northern Oil and Gas beats Legacy Reserves on 10 of the 10 factors compared between the two stocks.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.

About Legacy Reserves

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.