Analyzing Par Pacific (NYSE:PARR) and Magnolia Oil & Gas (NYSE:MGY)

Par Pacific (NYSE:PARR) and Magnolia Oil & Gas (NYSE:MGY) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Profitability

This table compares Par Pacific and Magnolia Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Par Pacific	8.85%	47.63%	13.66%
Magnolia Oil & Gas	31.65%	21.21%	14.69%

Volatility and Risk

Par Pacific has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.

Earnings and Valuation

This table compares Par Pacific and Magnolia Oil & Gas’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Par Pacific	$8.23 billion	0.22	$728.64 million	$11.95	2.58
Magnolia Oil & Gas	$1.23 billion	4.18	$388.30 million	$2.05	12.25

Par Pacific has higher revenue and earnings than Magnolia Oil & Gas. Par Pacific 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Par Pacific and Magnolia Oil & Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Par Pacific	0	2	1	0	2.33
Magnolia Oil & Gas	1	4	4	0	2.33

Par Pacific presently has a consensus price target of $39.67, suggesting a potential upside of 28.62%. Magnolia Oil & Gas has a consensus price target of $27.63, suggesting a potential upside of 10.02%. Given Par Pacific’s higher possible upside, research analysts plainly believe Par Pacific is more favorable than Magnolia Oil & Gas.

Institutional and Insider Ownership

92.2% of Par Pacific shares are held by institutional investors. Comparatively, 94.7% of Magnolia Oil & Gas shares are held by institutional investors. 4.4% of Par Pacific shares are held by insiders. Comparatively, 1.2% of Magnolia Oil & Gas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Magnolia Oil & Gas beats Par Pacific on 7 of the 13 factors compared between the two stocks.

About Par Pacific

Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 and is headquartered in Houston, Texas.

About Magnolia Oil & Gas

Magnolia Oil & Gas Corporation, an independent oil and natural gas company, engages in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States. Its properties are located primarily in Karnes County and the Giddings area in South Texas principally comprising the Eagle Ford Shale and the Austin Chalk formation. The company was incorporated in 2017 and is headquartered in Houston, Texas.