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KGS vs MGY

KGS
Kodiak Gas Services, Inc.
BEARISH
Price
$66.71
Market Cap
$5.89B
Sector
Energy
AI Confidence
85%
MGY
Magnolia Oil & Gas Corporation
NEUTRAL
Price
$30.24
Market Cap
$5.78B
Sector
Energy
AI Confidence
85%

Valuation

P/E Ratio
KGS
74.96
MGY
17.48
Forward P/E
KGS
20.18
MGY
11.56
P/B Ratio
KGS
4.76
MGY
2.83
P/S Ratio
KGS
4.5
MGY
4.41
EV/EBITDA
KGS
12.12
MGY
6.43

Profitability

Gross Margin
KGS
63.31%
MGY
80.66%
Operating Margin
KGS
31.32%
MGY
29.62%
Profit Margin
KGS
6.16%
MGY
24.79%
ROE
KGS
6.32%
MGY
17.01%
ROA
KGS
5.88%
MGY
9.59%

Growth

Revenue Growth
KGS
7.5%
MGY
-2.8%
Earnings Growth
KGS
32.6%
MGY
-17.0%

Financial Health

Debt/Equity
KGS
2.16
MGY
0.21
Current Ratio
KGS
0.84
MGY
1.54
Quick Ratio
KGS
0.53
MGY
1.53

Dividends

Dividend Yield
KGS
2.82%
MGY
2.03%
Payout Ratio
KGS
202.25%
MGY
34.68%

AI Verdict

KGS BEARISH

KGS exhibits a severe valuation disconnect, trading at $66.71 despite a Graham Number of $16.76 and an Intrinsic Value of $26.25. While the Piotroski F-Score of 4/9 indicates stable health, the company faces significant liquidity risks with a current ratio of 0.84 and a high debt-to-equity ratio of 2.16. Most critically, the dividend payout ratio of 202.25% is fundamentally unsustainable, and a consistent track record of earnings misses (average surprise -54.98% over the last 4 quarters) suggests the market has overextended the stock's price. The bearish insider sentiment and technical trend further signal a likely correction.

Strengths
Strong 1-year price appreciation (+98.3%)
Robust gross margins (63.31%) and operating margins (31.32%)
Positive year-over-year earnings growth (32.60%)
Risks
Unsustainable dividend payout ratio (202.25%)
Severe overvaluation relative to Graham Number and Intrinsic Value
Poor earnings reliability with frequent and large misses
MGY NEUTRAL

MGY exhibits a stable financial foundation with a Piotroski F-Score of 4/9 and an exceptionally clean balance sheet (Debt/Equity 0.21). However, the stock is trading at a significant premium to its Graham Number ($20.41) and Intrinsic Value ($12.11), suggesting overvaluation. While profitability margins and ROE far exceed sector averages, the company is currently facing negative revenue and earnings growth. The divergence between bullish analyst targets and bearish insider selling creates a conflicted outlook.

Strengths
Superior profitability with a 24.79% profit margin and 17.01% ROE
Very low leverage (Debt/Equity 0.21) compared to sector average (1.34)
Strong liquidity position with a current ratio of 1.54
Risks
Significant overvaluation relative to deterministic fair value models
Negative YoY earnings growth (-17.00%) and revenue growth (-2.80%)
Strongly bearish insider sentiment with CEO and CFO selling shares

Compare Another Pair

KGS vs MGY: Head-to-Head Comparison

This page compares Kodiak Gas Services, Inc. (KGS) and Magnolia Oil & Gas Corporation (MGY) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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