Magnolia Oil & Gas Corp (MGY) vs SM Energy Company (SM)

Magnolia Oil & Gas Corp and SM Energy Company are both Oil & Gas E&P companies. SM Energy Company is the larger, with a market value of $8.9B against $6.6B — 1.4× the size. SM Energy Company trades at the lower P/E: 7.7× against 11.1×. SM Energy Company grew revenue faster over the last twelve months: 75.4% against 11.4%. Magnolia Oil & Gas Corp has the higher net margin (28.8% vs 18.2%) and the higher return on invested capital (15.7% vs 7.36%). Both pay a dividend; SM Energy Company yields more (2.68% vs 2.60%). Across the 22 metrics below, Magnolia Oil & Gas Corp leads on 12 and SM Energy Company on 10.

Valuation

Metric MGY SM Oil & Gas E&P median
P/E 11.12 7.74 11.01
P/S 3.16 1.72 1.98
P/B 2.18 1.21 1.30
Price to free cash flow 8.39 5.75 10.68
EV/EBITDA 4.68 5.07 5.09
EV/Sales 3.23 3.03 2.63
Earnings yield 8.99% 12.91% 5.78%
Free cash flow yield 11.92% 17.38% 4.91%

Profitability

Metric MGY SM Oil & Gas E&P median
Gross margin 95.20% 74.16% 80.41%
Operating margin 38.03% 29.59% 21.39%
Net margin 28.77% 18.20% 14.17%
Free cash flow margin 37.68% 29.85% 8.18%
Return on equity 20.54% 16.13% 10.05%
Return on assets 14.19% 7.18% 5.81%
Return on invested capital 15.67% 7.36% 6.32%

Growth

Metric MGY SM Oil & Gas E&P median
Revenue growth (TTM) 11.35% 75.36% 9.94%
EPS growth (last fiscal year) (10.82%) (15.44%) (10.50%)
Revenue growth, 5-year CAGR 19.37% 22.86% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MGY SM Oil & Gas E&P median
Debt to equity 0.18 0.85 0.28
Current ratio 1.58 0.62 0.96
Net debt to EBITDA 0.14 1.06 0.89

Dividend

Metric MGY SM Oil & Gas E&P median
Dividend yield 2.60% 2.68% 3.29%
Payout ratio 0.29 0.21 0.35

Size

Metric MGY SM Oil & Gas E&P median
Market cap 6.57b 8.92b 1.04b

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