Reviewing Energy XXI Gulf Coast (NASDAQ:EGC) and Marathon Oil (MRO)

Marathon Oil (NYSE:MRO) and Energy XXI Gulf Coast (NASDAQ:EGC) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Dividends

Marathon Oil pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Energy XXI Gulf Coast does not pay a dividend. Marathon Oil pays out 28.2% of its earnings in the form of a dividend.

Profitability

This table compares Marathon Oil and Energy XXI Gulf Coast’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marathon Oil 16.65% 4.97% 2.78%
Energy XXI Gulf Coast N/A N/A N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Marathon Oil and Energy XXI Gulf Coast, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marathon Oil 0 5 14 0 2.74
Energy XXI Gulf Coast 0 0 0 0 N/A

Marathon Oil currently has a consensus target price of $23.91, indicating a potential upside of 37.56%. Given Marathon Oil’s higher possible upside, analysts clearly believe Marathon Oil is more favorable than Energy XXI Gulf Coast.

Insider and Institutional Ownership

81.6% of Marathon Oil shares are held by institutional investors. Comparatively, 74.7% of Energy XXI Gulf Coast shares are held by institutional investors. 0.5% of Marathon Oil shares are held by company insiders. Comparatively, 0.7% of Energy XXI Gulf Coast shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Marathon Oil and Energy XXI Gulf Coast’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 2.16 $1.10 billion $0.71 24.48
Energy XXI Gulf Coast N/A N/A N/A N/A N/A

Marathon Oil has higher revenue and earnings than Energy XXI Gulf Coast.

Summary

Marathon Oil beats Energy XXI Gulf Coast on 8 of the 10 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.

Energy XXI Gulf Coast Company Profile

Energy XXI Gulf Coast, Inc., an exploration and production company, engages in the acquisition, development, exploitation, and operation of oil and natural gas properties in the United States Gulf Coast region. It primarily operates properties offshore on the Gulf of Mexico Shelf, as well as onshore in Louisiana and Texas. As of December 31, 2017, the company had total proved reserves of 88.2 million barrel of oil equivalent; and operated or had an interest in 577 gross producing wells on 421,974 net developed acres, including interests in 55 producing fields. Energy XXI Gulf Coast, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.

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