W&T Offshore (NYSE:WTI – Get Free Report) and Mexco Energy (NYSE:MXC – Get Free Report) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Valuation and Earnings
This table compares W&T Offshore and Mexco Energy”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
W&T Offshore | $537.26 million | 0.45 | $15.60 million | ($0.43) | -3.85 |
Mexco Energy | $7.16 million | 3.20 | $1.35 million | $0.63 | 17.76 |
W&T Offshore has higher revenue and earnings than Mexco Energy. W&T Offshore is trading at a lower price-to-earnings ratio than Mexco Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
Net Margins | Return on Equity | Return on Assets | |
W&T Offshore | -11.95% | -775.16% | -4.37% |
Mexco Energy | 18.73% | 7.57% | 6.94% |
Insider and Institutional Ownership
42.9% of W&T Offshore shares are owned by institutional investors. Comparatively, 5.9% of Mexco Energy shares are owned by institutional investors. 33.5% of W&T Offshore shares are owned by insiders. Comparatively, 53.0% of Mexco Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for W&T Offshore and Mexco Energy, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
W&T Offshore | 0 | 0 | 1 | 0 | 3.00 |
Mexco Energy | 0 | 0 | 0 | 0 | 0.00 |
W&T Offshore currently has a consensus target price of $7.80, indicating a potential upside of 371.30%. Given W&T Offshore’s stronger consensus rating and higher possible upside, equities research analysts plainly believe W&T Offshore is more favorable than Mexco Energy.
Risk & Volatility
W&T Offshore has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Mexco Energy has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.
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 Mexco Energy
Mexco Energy Corporation, an independent oil and gas company, engages in the acquisition, exploration, development, and production of natural gas, crude oil, condensate, and natural gas liquids in the United States. It owns partial interests in approximately 6,400 gross producing wells located in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio. It also owned leasehold mineral, royalty, and other interests in approximately 2,768 net acres. The company was formerly known as Miller Oil Company and changed its name to Mexco Energy Corporation in April 1980. Mexco Energy Corporation was incorporated in 1972 and is based in Midland, Texas.
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