Northern Oil and Gas (NYSE:NOG) versus Legacy Reserves (OTCMKTS:LGCYQ) Critical Contrast

Legacy Reserves (OTCMKTS:LGCYQ) and Northern Oil and Gas (NYSE:NOG) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Profitability

This table compares Legacy Reserves and Northern Oil and Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legacy Reserves	N/A	N/A	N/A
Northern Oil and Gas	7.61%	20.61%	8.60%

Institutional and Insider Ownership

98.8% of Northern Oil and Gas shares are held by institutional investors. 0.8% of Legacy Reserves shares are held by insiders. Comparatively, 2.9% of Northern Oil and Gas shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Legacy Reserves and Northern Oil and Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Reserves	0	0	0	0	0.00
Northern Oil and Gas	1	5	4	1	2.45

Northern Oil and Gas has a consensus target price of $33.25, suggesting a potential upside of 58.09%. Given Northern Oil and Gas’ stronger consensus rating and higher possible upside, analysts clearly believe Northern Oil and Gas is more favorable than Legacy Reserves.

Earnings & Valuation

This table compares Legacy Reserves and Northern Oil and Gas”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legacy Reserves	N/A	N/A	N/A	N/A	N/A
Northern Oil and Gas	$2.23 billion	0.92	$520.31 million	$1.77	11.88

Northern Oil and Gas has higher revenue and earnings than Legacy Reserves.

Summary

Northern Oil and Gas beats Legacy Reserves on 10 of the 10 factors compared between the two stocks.

About Legacy Reserves

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.