Critical Analysis: Murphy Oil Corporation (MUR) and Its Peers

Murphy Oil Corporation (NYSE: MUR) is one of 242 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its rivals? We will compare Murphy Oil Corporation to similar companies based on the strength of its earnings, institutional ownership, risk, dividends, profitability, analyst recommendations and valuation.

Valuation & Earnings

This table compares Murphy Oil Corporation and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Murphy Oil Corporation $2.02 billion $1.32 billion -118.59
Murphy Oil Corporation Competitors $1.39 billion $598.40 million 21.26

Murphy Oil Corporation has higher revenue and earnings than its rivals. Murphy Oil Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Murphy Oil Corporation has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500. Comparatively, Murphy Oil Corporation’s rivals have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.

Profitability

This table compares Murphy Oil Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Murphy Oil Corporation -1.83% -1.76% -0.86%
Murphy Oil Corporation Competitors -451.08% 1.24% 0.38%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Murphy Oil Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Murphy Oil Corporation 1 8 1 0 2.00
Murphy Oil Corporation Competitors 1574 7891 12205 268 2.51

Murphy Oil Corporation currently has a consensus price target of $30.70, suggesting a potential upside of 17.67%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 42.25%. Given Murphy Oil Corporation’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Murphy Oil Corporation has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

97.6% of Murphy Oil Corporation shares are held by institutional investors. Comparatively, 61.8% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 6.9% of Murphy Oil Corporation shares are held by insiders. Comparatively, 11.9% of shares of all “Oil & Gas Exploration and Production” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Murphy Oil Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 3.8%. Murphy Oil Corporation pays out -454.5% of its earnings in the form of a dividend. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.8% and pay out 370.5% of their earnings in the form of a dividend. Murphy Oil Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Murphy Oil Corporation Company Profile

Murphy Oil Corporation (Murphy) is an oil and gas exploration and production company. The Company’s exploration and production business explores for and produces crude oil, natural gas and natural gas liquids across the world. Its exploration and production activities are subdivided into four geographic segments: the United States, Canada, Malaysia and all other countries. It explores for and produces crude oil, natural gas and natural gas liquids around the world. This business maintains upstream operating offices in several locations around the world, including Houston, Texas, Calgary, Alberta, and Kuala Lumpur, Malaysia. As of December 31, 2016, Murphy’s principal exploration and production activities were conducted in the United States by Murphy Exploration & Production Company-USA (Murphy Expro USA), in Malaysia, Australia, Brunei, and Vietnam by Murphy Exploration & Production Company-International (Murphy Expro International) and its subsidiaries, and in Western Canada.

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