Magnolia Oil & Gas (NYSE:MGY) & ZaZa Energy (OTCMKTS:ZAZA) Financial Analysis

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

Earnings and Valuation

This table compares Magnolia Oil & Gas and ZaZa 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	$1.32 billion	3.13	$366.03 million	$1.79	12.18
ZaZa Energy	N/A	N/A	N/A	N/A	N/A

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

Analyst Ratings

This is a summary of current recommendations for Magnolia Oil & Gas and ZaZa Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnolia Oil & Gas	2	6	6	0	2.29
ZaZa Energy	0	0	0	0	0.00

Magnolia Oil & Gas currently has a consensus target price of $26.50, suggesting a potential upside of 21.56%. Given Magnolia Oil & Gas’ stronger consensus rating and higher possible upside, equities analysts plainly believe Magnolia Oil & Gas is more favorable than ZaZa Energy.

Risk and Volatility

Magnolia Oil & Gas has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, ZaZa Energy has a beta of -0.75, indicating that its stock price is 175% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magnolia Oil & Gas	25.90%	18.10%	12.56%
ZaZa Energy	N/A	N/A	N/A

Insider and Institutional Ownership

94.7% of Magnolia Oil & Gas shares are owned by institutional investors. 1.2% of Magnolia Oil & Gas shares are owned by company insiders. Comparatively, 56.9% of ZaZa Energy shares are owned 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.

Summary

Magnolia Oil & Gas beats ZaZa Energy on 9 of the 10 factors compared between the two stocks.

About Magnolia Oil & Gas

Magnolia Oil & Gas Corp. engages in the acquisition, development, exploration, and production of oil and natural gas properties. It operates assets located in the Eagle Ford Shale and Austin Chalk formations in South Texas. The company was founded on February 14, 2017 and is headquartered in Houston, TX.

About ZaZa Energy

ZaZa Energy Corporation, an independent oil and gas company, focuses on the exploration and production of unconventional and conventional oil and gas assets in the United States. The company's properties include the Eagle Ford East Trend comprising approximately 41,000 net acres in Houston, Leon, Madison, Grimes, Walker, Trinity, and Montgomery counties in East Texas; and Eagle Ford Trend covering approximately 3,700 net acres located in DeWitt and Lavaca counties in South Texas. ZaZa Energy Corporation is headquartered in Houston, Texas.