Head-To-Head Analysis: Cenovus Energy (NYSE:CVE) and Magnolia Oil & Gas (NYSE:MGY)

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

Valuation & Earnings

This table compares Cenovus Energy and Magnolia Oil & Gas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cenovus Energy	$38.67 billion	0.85	$3.04 billion	$1.86	9.60
Magnolia Oil & Gas	$1.29 billion	4.24	$388.30 million	$2.01	13.45

Cenovus Energy has higher revenue and earnings than Magnolia Oil & Gas. Cenovus Energy 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.

Risk and Volatility

Cenovus Energy has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cenovus Energy and Magnolia Oil & Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cenovus Energy	0	1	5	0	2.83
Magnolia Oil & Gas	2	4	6	0	2.33

Cenovus Energy presently has a consensus price target of $30.75, indicating a potential upside of 72.27%. Magnolia Oil & Gas has a consensus price target of $27.27, indicating a potential upside of 0.86%. Given Cenovus Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Cenovus Energy is more favorable than Magnolia Oil & Gas.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cenovus Energy	8.56%	16.61%	8.73%
Magnolia Oil & Gas	29.44%	21.18%	14.45%

Insider and Institutional Ownership

51.2% of Cenovus Energy shares are held by institutional investors. Comparatively, 94.7% of Magnolia Oil & Gas shares are held by institutional investors. 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 company is poised for long-term growth.

Dividends

Cenovus Energy pays an annual dividend of $0.53 per share and has a dividend yield of 3.0%. Magnolia Oil & Gas pays an annual dividend of $0.52 per share and has a dividend yield of 1.9%. Cenovus Energy pays out 28.5% of its earnings in the form of a dividend. Magnolia Oil & Gas pays out 25.9% 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.

Summary

Magnolia Oil & Gas beats Cenovus Energy on 10 of the 16 factors compared between the two stocks.

About Cenovus Energy

Cenovus Energy Inc., together with its subsidiaries, develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally. The company operates through Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining segments. The Oil Sands segment develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. This segment assets include Foster Creek, Christina Lake, and Sunrise projects, as well as Lloydminster thermal and conventional heavy oil assets. The Conventional segment holds natural gas liquids and natural gas assets primarily located in Elmworth-Wapiti, Kaybob-Edson, Clearwater, and Rainbow Lake operating in Alberta and British Columbia, as well as interests in various natural gas processing facilities. The offshore segment engages in offshore operation, exploration, and development activities in China and the East Coast of Canada. The Canadian Refining segment owns and operates Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt, and other ancillary products, as well as Bruderheim crude-by-rail terminal and ethanol plants. The U.S. Refining segment refines crude oil to produce gasoline, diesel, jet fuel, asphalt, and other products. Cenovus Energy Inc. is headquartered in Calgary, Canada.

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.