Marathon Oil (NYSE:MRO) and Sanchez Energy (OTCMKTS:SNEC) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
This is a breakdown of current ratings for Marathon Oil and Sanchez Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Marathon Oil currently has a consensus target price of $22.70, indicating a potential upside of 63.07%. Given Marathon Oil’s higher possible upside, equities analysts plainly believe Marathon Oil is more favorable than Sanchez Energy.
Volatility & Risk
Marathon Oil has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500. Comparatively, Sanchez Energy has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.
Institutional & Insider Ownership
82.0% of Marathon Oil shares are owned by institutional investors. Comparatively, 0.5% of Sanchez Energy shares are owned by institutional investors. 0.5% of Marathon Oil shares are owned by insiders. Comparatively, 11.1% of Sanchez Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Marathon Oil and Sanchez Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Marathon Oil and Sanchez Energy’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Marathon Oil||$6.58 billion||1.73||$1.10 billion||$0.71||19.61|
|Sanchez Energy||$1.06 billion||0.01||$85.21 million||N/A||N/A|
Marathon Oil has higher revenue and earnings than Sanchez Energy.
Marathon Oil pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Sanchez Energy does not pay a dividend. Marathon Oil pays out 28.2% of its earnings in the form of a dividend.
Marathon Oil beats Sanchez Energy on 11 of the 13 factors compared between the two stocks.
Marathon Oil Company Profile
Marathon Oil Corporation operates as an energy company in the United States, Equatorial Guinea, the United Kingdom, and Libya. It operates in two segments, United States and International. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol. As of December 31, 2018, it had estimated proved developed reserves totaling 752 million barrels of oil equivalent (mmboe); and estimated proved undeveloped reserves totaling 529 mmboe. The company was formerly known as USX Corporation and changed its name to Marathon Oil Corporation in July 2001. Marathon Oil Corporation was founded in 1887 and is headquartered in Houston, Texas.
Sanchez Energy Company Profile
Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the United States. It engages in the horizontal development of resources from the Eagle Ford Shale in South Texas. It also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of December 31, 2018, the company had assembled approximately 271,000 net acres in the Eagle Ford Shale; and owned approximately 34,000 net acres in the TMS. Sanchez Energy Corporation was founded in 2011 and is headquartered in Houston, Texas.
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