W&T Offshore (NYSE:WTI) and Devon Energy (NYSE:DVN) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
Profitability
This table compares W&T Offshore and Devon Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| W&T Offshore | 31.40% | -21.21% | 4.67% |
| Devon Energy | -62.68% | 2.38% | 0.86% |
Valuation & Earnings
This table compares W&T Offshore and Devon 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 | $534.90 million | 0.87 | $74.09 million | $0.60 | 5.48 |
| Devon Energy | $6.22 billion | 2.33 | $-355,000,000.00 | $1.38 | 15.61 |
W&T Offshore has higher earnings, but lower revenue than Devon Energy. W&T Offshore is trading at a lower price-to-earnings ratio than Devon Energy, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
36.6% of W&T Offshore shares are owned by institutional investors. Comparatively, 80.9% of Devon Energy shares are owned by institutional investors. 34.1% of W&T Offshore shares are owned by company insiders. Comparatively, 0.6% of Devon Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
W&T Offshore has a beta of 3.16, meaning that its stock price is 216% more volatile than the S&P 500. Comparatively, Devon Energy has a beta of 3.46, meaning that its stock price is 246% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for W&T Offshore and Devon Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| W&T Offshore | 0 | 2 | 1 | 0 | 2.33 |
| Devon Energy | 0 | 2 | 17 | 1 | 2.95 |
W&T Offshore presently has a consensus target price of $2.90, suggesting a potential downside of 11.85%. Devon Energy has a consensus target price of $18.2143, suggesting a potential downside of 15.44%. Given W&T Offshore's higher probable upside, analysts clearly believe W&T Offshore is more favorable than Devon Energy.
Summary
Devon Energy beats W&T Offshore on 9 of the 15 factors compared between the two stocks.
