Head to Head Review: Carbon Energy (OTCMKTS:CRBO) & W&T Offshore (NYSE:WTI)

Carbon Energy (OTCMKTS:CRBOGet Rating) and W&T Offshore (NYSE:WTIGet Rating) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Profitability

This table compares Carbon Energy and W&T Offshore’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carbon Energy N/A N/A N/A
W&T Offshore 17.26% -102.77% 18.05%

Insider & Institutional Ownership

2.5% of Carbon Energy shares are held by institutional investors. Comparatively, 51.1% of W&T Offshore shares are held by institutional investors. 7.1% of Carbon Energy shares are held by insiders. Comparatively, 34.4% of W&T Offshore shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Carbon Energy has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500.

Valuation and Earnings

This table compares Carbon Energy and W&T Offshore’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carbon Energy $116.63 million 0.00 $1.10 million N/A N/A
W&T Offshore $558.01 million 1.61 -$41.48 million $0.90 6.97

Carbon Energy has higher earnings, but lower revenue than W&T Offshore.

Analyst Recommendations

This is a summary of recent ratings and target prices for Carbon Energy and W&T Offshore, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carbon Energy 0 0 0 0 N/A
W&T Offshore 0 0 2 0 3.00

W&T Offshore has a consensus target price of $8.40, suggesting a potential upside of 33.97%. Given W&T Offshore’s higher probable upside, analysts clearly believe W&T Offshore is more favorable than Carbon Energy.

Summary

W&T Offshore beats Carbon Energy on 9 of the 11 factors compared between the two stocks.

About Carbon Energy

(Get Rating)

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. As of December 31, 2018, it owned working interests in 7,100 net wells and royalty interests in approximately 900 wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions in approximately 340,700 net developed acres and approximately 1,319,200 net undeveloped acres. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.

About W&T Offshore

(Get Rating)

W&T Offshore, Inc., an independent oil and natural gas producer, engages in the acquisition, exploration, and development of oil and natural gas properties in the Gulf of Mexico. The company sells crude oil, natural gas liquids, and natural gas. As of December 31, 2021, the company had working interests in 43 fields in federal and state waters; and under lease approximately 606,000 gross acres, including approximately 419,000 gross acres on the Gulf of Mexico Shelf, as well as approximately 187,000 gross acres in the Gulf of Mexico deepwater. W&T Offshore, Inc. was founded in 1983 and is headquartered in Houston, Texas.

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