Magnolia Oil & Gas vs AEM Which Is More Favorable?

Magnolia Oil & Gas Corporation is a Texas-based company engaged in the exploration and production of oil and natural gas reserves. On the other hand, AEM is a Mexico-based mining company that produces precious metals such as gold and silver. Both companies operate in the energy sector but have different focuses within the industry. Magnolia is more focused on traditional oil and gas extraction, while AEM specializes in mining precious metals. Investors looking for exposure to different segments of the energy industry may find these stocks appealing.

Magnolia Oil & Gas or AEM?

When comparing Magnolia Oil & Gas and AEM, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Magnolia Oil & Gas and AEM.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Magnolia Oil & Gas has a dividend yield of 2.36%, while AEM has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Magnolia Oil & Gas reports a 5-year dividend growth of 0.00% year and a payout ratio of 24.84%. On the other hand, AEM reports a 5-year dividend growth of -33.41% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Magnolia Oil & Gas P/E ratio at 13.45 and AEM's P/E ratio at -20.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Magnolia Oil & Gas P/B ratio is 2.39 while AEM's P/B ratio is 0.87.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Magnolia Oil & Gas has seen a 5-year revenue growth of 0.84%, while AEM's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Magnolia Oil & Gas's ROE at 20.63% and AEM's ROE at -4.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $27.13 for Magnolia Oil & Gas and S$1.29 for AEM. Over the past year, Magnolia Oil & Gas's prices ranged from $19.16 to $27.73, with a yearly change of 44.70%. AEM's prices fluctuated between S$1.16 and S$3.56, with a yearly change of 207.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.