Southwestern Energy (NYSE: SWN) and MV Oil Trust (NYSE:MVO) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
This is a breakdown of recent ratings and price targets for Southwestern Energy and MV Oil Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MV Oil Trust||0||0||0||0||N/A|
Southwestern Energy currently has a consensus target price of $7.49, indicating a potential upside of 69.11%. Given Southwestern Energy’s higher probable upside, equities analysts plainly believe Southwestern Energy is more favorable than MV Oil Trust.
Volatility & Risk
Southwestern Energy has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, MV Oil Trust has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.
MV Oil Trust pays an annual dividend of $0.88 per share and has a dividend yield of 11.4%. Southwestern Energy does not pay a dividend. MV Oil Trust pays out 115.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider and Institutional Ownership
80.6% of Southwestern Energy shares are owned by institutional investors. Comparatively, 12.3% of MV Oil Trust shares are owned by institutional investors. 1.0% of Southwestern Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Southwestern Energy and MV Oil Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Southwestern Energy||$3.20 billion||0.81||$1.05 billion||$1.50||2.95|
|MV Oil Trust||$5.50 million||16.08||$4.60 million||$0.76||10.12|
Southwestern Energy has higher revenue and earnings than MV Oil Trust. Southwestern Energy is trading at a lower price-to-earnings ratio than MV Oil Trust, indicating that it is currently the more affordable of the two stocks.
This table compares Southwestern Energy and MV Oil Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MV Oil Trust||90.96%||N/A||46.68%|
Southwestern Energy beats MV Oil Trust on 10 of the 15 factors compared between the two stocks.
Southwestern Energy Company Profile
Southwestern Energy Company is an energy company engaged in natural gas and oil exploration, development and production. The Company operates through two segments: Exploration and Production (E&P) and Midstream Services. Its operations in northeast Pennsylvania are primarily focused on the unconventional natural gas reservoir known as the Marcellus Shale. Through its affiliated midstream subsidiaries, it is engaged in natural gas gathering activities in Arkansas and Louisiana. Its operations are principally focused on the development of unconventional natural gas reservoirs located in Pennsylvania, West Virginia and Arkansas. As of December 31, 2016, its estimated proved natural gas and oil reserves were 5,253 billions of cubic feet equivalent (Bcfe). During the fiscal year ended December 31, 2016, it gathered approximately 600 billion cubic feet (Bcf) of natural gas in the Fayetteville Shale area, including 42 Bcf of natural gas from third-party operated wells.
MV Oil Trust Company Profile
MV Oil Trust (the Trust) is a statutory trust. The Trust acquires and holds a term net profits interest for the benefit of the Trust unitholders. Its underlying properties consist of MV Partners, LLC’s (MV Partners) net interests in all of its oil and natural gas properties, which are located in the Mid-Continent region in the States of Kansas and Colorado. These oil and gas properties include approximately 1,000 producing oil and gas wells. The underlying properties located in the El Dorado Area are operated on behalf of MV Partners by Vess Oil Corporation (Vess Oil) and are located in the El Dorado, Augusta and Valley Center Fields. Each of Vess Oil and Murfin Drilling Company, Inc. (Murfin Drilling) operate leases on behalf of MV Partners included in the underlying properties that are located in the Northwest Kansas Area. The primary fields in this area are the Bemis-Shutts, Trapp, Ray and Hansen Fields.
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