Obsidian Energy (OTCMKTS:OBELF – Get Free Report) and W&T Offshore (NYSE:WTI – Get Free Report) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.
Risk and Volatility
Obsidian Energy has a beta of 2.47, indicating that its stock price is 147% more volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.
Profitability
This table compares Obsidian Energy and W&T Offshore’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Obsidian Energy | 99.13% | 78.07% | 35.32% |
| W&T Offshore | 2.93% | -71.70% | -1.95% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Obsidian Energy | $220.00 million | 2.93 | -$576.07 million | $4.17 | 1.91 |
| W&T Offshore | $532.66 million | 0.64 | $15.60 million | $0.10 | 23.30 |
W&T Offshore has higher revenue and earnings than Obsidian Energy. Obsidian Energy is trading at a lower price-to-earnings ratio than W&T Offshore, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Obsidian Energy and W&T Offshore, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Obsidian Energy | 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, indicating a potential upside of 234.76%. Given W&T Offshore’s higher probable upside, analysts plainly believe W&T Offshore is more favorable than Obsidian Energy.
Institutional and Insider Ownership
0.0% of Obsidian Energy shares are owned by institutional investors. Comparatively, 42.9% of W&T Offshore shares are owned by institutional investors. 33.5% of W&T Offshore shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
W&T Offshore beats Obsidian Energy on 7 of the 13 factors compared between the two stocks.
About Obsidian Energy
Obsidian Energy Ltd. is an exploration and production company. The firm engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Its property portfolio includes Cardium, Viking, and Peace River. The company was founded on December 27, 1979 and is headquartered in Calgary, Canada.
About W&T Offshore
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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