Analyzing Magnolia Oil & Gas (NYSE:MGY) and PostRock Energy (OTCMKTS:PSTRQ)

Magnolia Oil & Gas (NYSE:MGY) and PostRock Energy (OTCMKTS:PSTRQ) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Insider & Institutional Ownership

94.7% of Magnolia Oil & Gas shares are held by institutional investors. 1.2% of Magnolia Oil & Gas shares are held by company insiders. Comparatively, 79.2% of PostRock Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Magnolia Oil & Gas and PostRock Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnolia Oil & Gas	2	5	6	0	2.31
PostRock Energy	0	0	0	0	0.00

Magnolia Oil & Gas presently has a consensus price target of $27.67, suggesting a potential upside of 1.79%. Given Magnolia Oil & Gas’ stronger consensus rating and higher possible upside, analysts clearly believe Magnolia Oil & Gas is more favorable than PostRock Energy.

Earnings & Valuation

This table compares Magnolia Oil & Gas and PostRock Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnolia Oil & Gas	$1.23 billion	4.35	$388.30 million	$2.02	13.46
PostRock Energy	N/A	N/A	N/A	N/A	N/A

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magnolia Oil & Gas	28.88%	20.78%	14.19%
PostRock Energy	N/A	N/A	N/A

Summary

Magnolia Oil & Gas beats PostRock Energy on 8 of the 9 factors compared between the two stocks.

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.

About PostRock Energy

PostRock Energy Corp. engages in the acquisition, exploration, development, production, and gathering of crude oil and natural gas. It focuses on the Cherokee Basin project in southeastern Kansas, northeastern Oklahoma, and central Oklahoma. The firm also owns and operates minor oil and gas producing properties in the Appalachian Basin. The company was founded in July 2009 and is headquartered in Oklahoma City, OK.