Murphy Oil (NYSE:MUR) & Kosmos Energy (NYSE:KOS) Head to Head Review

Kosmos Energy (NYSE:KOS) and Murphy Oil (NYSE:MUR) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Profitability

This table compares Kosmos Energy and Murphy Oil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kosmos Energy	12.21%	31.08%	6.53%
Murphy Oil	14.78%	9.22%	5.18%

Earnings & Valuation

This table compares Kosmos Energy and Murphy Oil”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kosmos Energy	$1.70 billion	1.09	$213.52 million	$0.44	8.95
Murphy Oil	$3.46 billion	1.37	$661.56 million	$3.10	10.47

Murphy Oil has higher revenue and earnings than Kosmos Energy. Kosmos Energy is trading at a lower price-to-earnings ratio than Murphy Oil, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

95.3% of Kosmos Energy shares are held by institutional investors. Comparatively, 78.3% of Murphy Oil shares are held by institutional investors. 2.0% of Kosmos Energy shares are held by company insiders. Comparatively, 5.9% of Murphy Oil shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Kosmos Energy has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500. Comparatively, Murphy Oil has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Kosmos Energy and Murphy Oil, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kosmos Energy	0	2	2	0	2.50
Murphy Oil	0	9	5	0	2.36

Kosmos Energy presently has a consensus target price of $5.75, indicating a potential upside of 45.94%. Murphy Oil has a consensus target price of $40.92, indicating a potential upside of 26.01%. Given Kosmos Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe Kosmos Energy is more favorable than Murphy Oil.

Summary

Murphy Oil beats Kosmos Energy on 8 of the 14 factors compared between the two stocks.

About Kosmos Energy

Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.

About Murphy Oil

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.