Cabot Oil & Gas (NYSE: COG) and MV Oil Trust (NYSE:MVO) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Volatility & Risk
Cabot Oil & Gas has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, MV Oil Trust has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.
This table compares Cabot Oil & Gas and MV Oil Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cabot Oil & Gas||-8.80%||6.63%||3.38%|
|MV Oil Trust||90.96%||N/A||46.68%|
Institutional & Insider Ownership
96.0% of Cabot Oil & Gas shares are held by institutional investors. Comparatively, 9.8% of MV Oil Trust shares are held by institutional investors. 1.6% of Cabot Oil & Gas shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Cabot Oil & Gas pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. MV Oil Trust pays an annual dividend of $0.88 per share and has a dividend yield of 10.4%. Cabot Oil & Gas pays out -77.4% of its earnings in the form of a dividend. MV Oil Trust pays out 117.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings & Valuation
This table compares Cabot Oil & Gas and MV Oil Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cabot Oil & Gas||$1.16 billion||11.14||-$417.12 million||($0.31)||-89.77|
|MV Oil Trust||$5.50 million||17.65||$4.60 million||$0.75||11.25|
MV Oil Trust has lower revenue, but higher earnings than Cabot Oil & Gas. Cabot Oil & Gas 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 is a summary of current recommendations and price targets for Cabot Oil & Gas and MV Oil Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cabot Oil & Gas||2||7||12||0||2.48|
|MV Oil Trust||0||0||0||0||N/A|
Cabot Oil & Gas currently has a consensus price target of $31.44, indicating a potential upside of 12.99%. Given Cabot Oil & Gas’ higher possible upside, equities research analysts clearly believe Cabot Oil & Gas is more favorable than MV Oil Trust.
Cabot Oil & Gas beats MV Oil Trust on 9 of the 15 factors compared between the two stocks.
About Cabot Oil & Gas
Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. The Company operates in the segment of natural gas and oil development, exploitation, exploration and production, in the continental United States. Its assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. As of December 31, 2016, its exploration, development and production operations were primarily concentrated in two unconventional plays: the Marcellus Shale in northeast Pennsylvania and the Eagle Ford Shale in south Texas. The Company also has operations in various other unconventional and conventional plays throughout the continental United States. Its Marcellus Shale properties are principally located in Susquehanna County, Pennsylvania. Its properties in the Eagle Ford Shale are principally located in Atascosa, Frio and La Salle Counties, Texas.
About MV Oil Trust
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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