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

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

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

Earnings and 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	$1.31 billion	4.08	$388.30 million	$2.02	13.48
PostRock Energy	N/A	N/A	N/A	N/A	N/A

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

Risk & Volatility

Magnolia Oil & Gas has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, PostRock Energy has a beta of -9.07, meaning that its stock price is 1,007% less volatile than the S&P 500.

Institutional & Insider Ownership

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Magnolia Oil & Gas and PostRock Energy, as reported by MarketBeat.

	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, indicating a potential upside of 1.58%. Given Magnolia Oil & Gas’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Magnolia Oil & Gas is more favorable than PostRock Energy.

Summary

Magnolia Oil & Gas beats PostRock Energy on 9 of the 10 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.