W&T Offshore (NYSE:WTI – Get Free Report) and Expand Energy (NASDAQ:EXE – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Profitability
This table compares W&T Offshore and Expand Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| W&T Offshore | -19.32% | N/A | -2.59% |
| Expand Energy | 20.46% | 10.33% | 6.89% |
Valuation & Earnings
This table compares W&T Offshore and Expand Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| W&T Offshore | $501.46 million | 1.18 | -$150.06 million | ($0.73) | -5.36 |
| Expand Energy | $12.12 billion | 1.69 | $1.82 billion | $11.58 | 7.63 |
Expand Energy has higher revenue and earnings than W&T Offshore. W&T Offshore is trading at a lower price-to-earnings ratio than Expand Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for W&T Offshore and Expand Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| W&T Offshore | 1 | 1 | 1 | 0 | 2.00 |
| Expand Energy | 0 | 6 | 15 | 3 | 2.88 |
W&T Offshore presently has a consensus price target of $4.25, indicating a potential upside of 8.56%. Expand Energy has a consensus price target of $127.42, indicating a potential upside of 44.26%. Given Expand Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Expand Energy is more favorable than W&T Offshore.
Volatility & Risk
W&T Offshore has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Expand Energy has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.
Dividends
W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 1.0%. Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.6%. W&T Offshore pays out -5.5% of its earnings in the form of a dividend. Expand Energy pays out 19.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional and Insider Ownership
42.9% of W&T Offshore shares are held by institutional investors. Comparatively, 97.9% of Expand Energy shares are held by institutional investors. 35.9% of W&T Offshore shares are held by company insiders. Comparatively, 0.2% of Expand Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Expand Energy beats W&T Offshore on 15 of the 17 factors compared between the two stocks.
About W&T Offshore
W&T Offshore, Inc. engages in the production, exploration, development, and acquisition of oil and natural gas properties. It focuses its operations in the Gulf of Mexico. The company was founded by Tracy W. Krohn in 1983 and is headquartered in Houston, TX.
About Expand Energy
Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.
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