Golar LNG (NASDAQ:GLNG – Get Free Report) and Magnolia Oil & Gas (NYSE:MGY – Get Free Report) are both mid-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Profitability
This table compares Golar LNG and Magnolia Oil & Gas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Golar LNG | 31.27% | 8.91% | 3.75% |
| Magnolia Oil & Gas | 25.82% | 19.90% | 12.69% |
Valuation and Earnings
This table compares Golar LNG and Magnolia Oil & Gas”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Golar LNG | $393.52 million | 11.08 | $65.68 million | $1.60 | 26.89 |
| Magnolia Oil & Gas | $1.31 billion | 4.98 | $325.25 million | $2.23 | 11.00 |
Magnolia Oil & Gas has higher revenue and earnings than Golar LNG. Magnolia Oil & Gas is trading at a lower price-to-earnings ratio than Golar LNG, indicating that it is currently the more affordable of the two stocks.
Dividends
Golar LNG pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Magnolia Oil & Gas pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Golar LNG pays out 62.5% of its earnings in the form of a dividend. Magnolia Oil & Gas pays out 32.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Golar LNG has raised its dividend for 2 consecutive years and Magnolia Oil & Gas has raised its dividend for 3 consecutive years. Magnolia Oil & Gas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Golar LNG has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
Insider & Institutional Ownership
92.2% of Golar LNG shares are owned by institutional investors. Comparatively, 94.7% of Magnolia Oil & Gas shares are owned by institutional investors. 0.0% of Golar LNG shares are owned by company insiders. Comparatively, 0.9% of Magnolia Oil & Gas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Golar LNG and Magnolia Oil & Gas, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Golar LNG | 0 | 1 | 4 | 1 | 3.00 |
| Magnolia Oil & Gas | 0 | 6 | 13 | 1 | 2.75 |
Golar LNG presently has a consensus target price of $68.67, suggesting a potential upside of 59.62%. Magnolia Oil & Gas has a consensus target price of $31.39, suggesting a potential upside of 27.92%. Given Golar LNG’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Golar LNG is more favorable than Magnolia Oil & Gas.
Summary
Magnolia Oil & Gas beats Golar LNG on 12 of the 17 factors compared between the two stocks.
About Golar LNG
Golar LNG Limited is an international provider of liquefied natural gas (LNG) infrastructure, with a primary focus on floating LNG (FLNG) technology. The company develops and operates floating facilities that process natural gas offshore and convert it into LNG for transport to customers. Its business includes FLNG vessel ownership and operations, along with related project development and infrastructure services. By locating liquefaction facilities near offshore gas resources, Golar aims to help bring gas reserves to market without relying solely on onshore processing plants.
About Magnolia Oil & Gas
Magnolia Oil & Gas Corporation is an independent exploration and production company focused on developing oil and natural gas resources in South Texas. Its operations target the Eagle Ford Shale and Austin Chalk formations. The company’s assets are concentrated in the Karnes and Giddings areas. Its production includes crude oil, natural gas and natural gas liquids. Magnolia was established in 2018 through a business combination with TPG Pace Holdings. It is headquartered in Houston, Texas.
Receive News & Ratings for Golar LNG Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Golar LNG and related companies with MarketBeat.com's FREE daily email newsletter.
