Magnolia Oil & Gas (NYSE:MGY) & HyperDynamics (OTCMKTS:HDYNQ) Financial Analysis

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

Risk and Volatility

HyperDynamics has a beta of 6.05, suggesting that its stock price is 505% more volatile than the S&P 500. Comparatively, Magnolia Oil & Gas has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for HyperDynamics and Magnolia Oil & Gas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HyperDynamics	0	0	0	0	0.00
Magnolia Oil & Gas	0	8	8	0	2.50

Magnolia Oil & Gas has a consensus target price of $27.58, indicating a potential upside of 1.54%. Given Magnolia Oil & Gas’ stronger consensus rating and higher probable upside, analysts clearly believe Magnolia Oil & Gas is more favorable than HyperDynamics.

Insider & Institutional Ownership

94.7% of Magnolia Oil & Gas shares are held by institutional investors. 5.9% of HyperDynamics shares are held by insiders. Comparatively, 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 company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HyperDynamics	N/A	N/A	N/A
Magnolia Oil & Gas	24.79%	16.67%	11.53%

Valuation & Earnings

This table compares HyperDynamics and Magnolia Oil & Gas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HyperDynamics	N/A	N/A	N/A	N/A	N/A
Magnolia Oil & Gas	$1.31 billion	3.86	$325.25 million	$1.72	15.79

Magnolia Oil & Gas has higher revenue and earnings than HyperDynamics.

Summary

Magnolia Oil & Gas beats HyperDynamics on 8 of the 10 factors compared between the two stocks.

About HyperDynamics

Hyperdynamics Corporation, together with its subsidiaries, operates as an independent oil and gas exploration company. It engages in the acquisition, exploration, and development of oil and natural gas properties in the Republic of Guinea, Northwest Africa. The company owns a 100% interest in a concession that covers an area of approximately 5,000 square miles in offshore Guinea. Hyperdynamics Corporation was founded in 1983 and is headquartered in Houston, Texas.

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.