Marathon Oil (NYSE: MRO) and Pacific Coast Oil Trust (NYSE:ROYT) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.
This is a summary of current recommendations for Marathon Oil and Pacific Coast Oil Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pacific Coast Oil Trust||0||1||0||0||2.00|
Marathon Oil presently has a consensus target price of $18.41, indicating a potential upside of 23.81%. Pacific Coast Oil Trust has a consensus target price of $1.50, indicating a potential downside of 30.56%. Given Marathon Oil’s stronger consensus rating and higher possible upside, research analysts clearly believe Marathon Oil is more favorable than Pacific Coast Oil Trust.
Volatility & Risk
Marathon Oil has a beta of 2.43, suggesting that its stock price is 143% more volatile than the S&P 500. Comparatively, Pacific Coast Oil Trust has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500.
Insider and Institutional Ownership
81.3% of Marathon Oil shares are owned by institutional investors. Comparatively, 16.3% of Pacific Coast Oil Trust shares are owned by institutional investors. 0.4% of Marathon Oil shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Marathon Oil and Pacific Coast Oil Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pacific Coast Oil Trust||6.02%||1.44%||1.43%|
Earnings & Valuation
This table compares Marathon Oil and Pacific Coast Oil Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Marathon Oil||$4.77 billion||2.65||-$5.72 billion||($1.02)||-14.58|
|Pacific Coast Oil Trust||$32.19 million||2.59||$220,000.00||$0.08||27.00|
Pacific Coast Oil Trust has lower revenue, but higher earnings than Marathon Oil. Marathon Oil is trading at a lower price-to-earnings ratio than Pacific Coast Oil Trust, indicating that it is currently the more affordable of the two stocks.
Marathon Oil pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Pacific Coast Oil Trust pays an annual dividend of $0.48 per share and has a dividend yield of 22.2%. Marathon Oil pays out -19.6% of its earnings in the form of a dividend. Pacific Coast Oil Trust pays out 600.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Marathon Oil beats Pacific Coast Oil Trust on 9 of the 16 factors compared between the two stocks.
About Marathon Oil
Marathon Oil Corporation is an exploration and production (E&P) company. The Company operates through three segments: North America E&P, International E&P and Oil Sands Mining. The North America E&P segment explores for, produces and markets crude oil and condensate, natural gas liquids (NGLs) and natural gas in North America. The International E&P segment explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of North America, and produces and markets products manufactured from natural gas, such as liquefied natural gas (LNG) and methanol, in Equatorial Guinea (E.G.). The Oil Sands Mining segment mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.
About Pacific Coast Oil Trust
Pacific Coast Oil Trust is a statutory trust formed by Pacific Coast Energy Company LP (PCEC). The Trust is engaged in acquiring and holding net profits and royalty interests in certain oil and natural gas properties located in California for the benefit of the Trust unitholders. The Underlying Properties consist of producing and non-producing interests in oil units, wells and lands located onshore in California in the Santa Maria Basin, which contains PCEC’s Orcutt properties, and the Los Angeles Basin, which contains PCEC’s West Pico, East Coyote and Sawtelle properties. The Underlying Properties consist of the proved developed reserves referred to as the Developed Properties and all other development potential on the Underlying Properties, which are referred to as the Remaining Properties. Production from the Developed Properties attributable to the Trust is produced from wells that, because they have already been drilled and require limited additional capital expenditures.
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