FX Energy (NASDAQ: FXEN) and Marathon Oil (NYSE:MRO) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

80.3% of Marathon Oil shares are held by institutional investors. 0.4% of Marathon Oil shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares FX Energy and Marathon Oil’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FX Energy N/A N/A N/A ($1.13) N/A
Marathon Oil $4.65 billion 3.44 -$2.14 billion ($2.56) -7.35

FX Energy has higher earnings, but lower revenue than Marathon Oil. Marathon Oil is trading at a lower price-to-earnings ratio than FX Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for FX Energy and Marathon Oil, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FX Energy 0 0 0 0 N/A
Marathon Oil 0 10 12 0 2.55

Marathon Oil has a consensus target price of $16.76, indicating a potential downside of 10.93%.

Profitability

This table compares FX Energy and Marathon Oil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FX Energy -46.14% -120.44% -14.27%
Marathon Oil -148.07% -3.02% -1.60%

Dividends

Marathon Oil pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. FX Energy does not pay a dividend. Marathon Oil pays out -7.8% of its earnings in the form of a dividend.

Summary

Marathon Oil beats FX Energy on 8 of the 10 factors compared between the two stocks.

About FX Energy

FX Energy, Inc. is an independent oil and gas exploration and production company with production, development, and exploration activities in Poland. The Company also has oil production and oilfield service activities in the United States. Its two operating segments include exploration and production (E&P) segment in Poland and the United States, and the oilfield services segment in the United States. It holds oil and gas exploration rights in Poland in various separately designated project areas encompassing approximately 1.8 million gross acres. It holds interests in approximately 1.3 million net acres throughout Poland. Its activities in Poland are conducted in various project areas: Fences, Edge and Warsaw South. Its drilling activities are focused primarily on the core Fences area. The Fences concession area encompasses 853,000 gross acres (3,450 square kilometers) in western Poland’s Permian Basin.

About Marathon Oil

Marathon Oil Corporation is an exploration and production (E&P) company. The Company operates through three segments: North America E&P, International E&P and Oil Sands Mining. The North America E&P segment explores for, produces and markets crude oil and condensate, natural gas liquids (NGLs) and natural gas in North America. The International E&P segment explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of North America, and produces and markets products manufactured from natural gas, such as liquefied natural gas (LNG) and methanol, in Equatorial Guinea (E.G.). The Oil Sands Mining segment mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.

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