Comparing Magnolia Oil & Gas (NYSE:MGY) and China Coal Energy (OTCMKTS:CCOZY)

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

Earnings and Valuation

This table compares China Coal Energy and Magnolia Oil & Gas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Coal Energy	$20.59 billion	0.95	$2.02 billion	$3.98	7.43
Magnolia Oil & Gas	$1.31 billion	4.64	$325.25 million	$2.28	11.27

China Coal Energy has higher revenue and earnings than Magnolia Oil & Gas. China Coal Energy is trading at a lower price-to-earnings ratio than Magnolia Oil & Gas, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

China Coal Energy has a beta of -0.31, indicating that its stock price is 131% less volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

94.7% of Magnolia Oil & Gas shares are held by institutional investors. 0.9% of Magnolia Oil & Gas shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

China Coal Energy pays an annual dividend of $0.85 per share and has a dividend yield of 2.9%. Magnolia Oil & Gas pays an annual dividend of $0.72 per share and has a dividend yield of 2.8%. China Coal Energy pays out 21.4% of its earnings in the form of a dividend. Magnolia Oil & Gas pays out 31.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Magnolia Oil & Gas has increased its dividend for 3 consecutive years. China Coal Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
China Coal Energy	N/A	N/A	N/A
Magnolia Oil & Gas	28.77%	21.04%	14.46%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for China Coal Energy and Magnolia Oil & Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Coal Energy	0	0	0	1	4.00
Magnolia Oil & Gas	0	6	10	2	2.78

Magnolia Oil & Gas has a consensus price target of $31.71, suggesting a potential upside of 23.39%. Given Magnolia Oil & Gas’ higher possible upside, analysts plainly believe Magnolia Oil & Gas is more favorable than China Coal Energy.

Summary

Magnolia Oil & Gas beats China Coal Energy on 12 of the 18 factors compared between the two stocks.

About China Coal Energy

China Coal Energy Company Limited primarily engages in the coal production and trading and coal chemical businesses in the People's Republic of China and internationally. The company offers polyolefin, methanol, urea, and other coal chemical products. It is also involved in the coal mining equipment manufacturing, pithead power generation, and other activities. The company was founded in 2006 and is based in Beijing, the People's Republic of China. China Coal Energy Company Limited operates as a subsidiary of China National Coal Group Co., Ltd.

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.