Comparing W&T Offshore (NYSE:WTI) and PrimeEnergy Resources (NASDAQ:PNRG)

PrimeEnergy Resources (NASDAQ:PNRGGet Free Report) and W&T Offshore (NYSE:WTIGet 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 institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Analyst Recommendations

This is a breakdown of current ratings for PrimeEnergy Resources and W&T Offshore, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PrimeEnergy Resources 0 0 0 0 N/A
W&T Offshore 0 0 1 0 3.00

W&T Offshore has a consensus target price of $7.80, suggesting a potential upside of 269.67%. Given W&T Offshore’s higher probable upside, analysts clearly believe W&T Offshore is more favorable than PrimeEnergy Resources.

Valuation & Earnings

This table compares PrimeEnergy Resources and W&T Offshore’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PrimeEnergy Resources $123.12 million 1.54 $28.10 million $14.64 7.26
W&T Offshore $532.66 million 0.58 $15.60 million ($0.15) -14.07

PrimeEnergy Resources has higher earnings, but lower revenue than W&T Offshore. W&T Offshore is trading at a lower price-to-earnings ratio than PrimeEnergy Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
PrimeEnergy Resources 26.50% 24.03% 13.59%
W&T Offshore -4.04% -100.74% -2.41%

Institutional and Insider Ownership

42.9% of W&T Offshore shares are owned by institutional investors. 61.1% of PrimeEnergy Resources shares are owned by insiders. Comparatively, 33.5% of W&T Offshore shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

PrimeEnergy Resources has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Summary

PrimeEnergy Resources beats W&T Offshore on 8 of the 13 factors compared between the two stocks.

About PrimeEnergy Resources

(Get Free Report)

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.

About W&T Offshore

(Get Free Report)

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 and condensate, natural gas liquids, and natural gas. W&T Offshore, Inc. was founded in 1983 and is headquartered in Houston, Texas.

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