Expand Energy (NASDAQ:EXE) and W&T Offshore (NYSE:WTI) Financial Analysis

W&T Offshore (NYSE:WTI) and Expand Energy (NASDAQ:EXE) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Insider & Institutional Ownership

42.9% of W&T Offshore shares are held by institutional investors. Comparatively, 97.9% of Expand Energy shares are held by institutional investors. 35.9% of W&T Offshore shares are held by company insiders. Comparatively, 0.2% of Expand Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
W&T Offshore	-19.32%	N/A	-2.59%
Expand Energy	20.46%	10.33%	6.89%

Dividends

W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.6%. W&T Offshore pays out -5.5% of its earnings in the form of a dividend. Expand Energy pays out 19.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares W&T Offshore and Expand Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W&T Offshore	$501.46 million	1.12	-$150.06 million	($0.73)	-5.12
Expand Energy	$13.66 billion	1.47	$1.82 billion	$11.58	7.52

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

Volatility and Risk

W&T Offshore has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Expand Energy has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for W&T Offshore and Expand Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W&T Offshore	1	1	1	0	2.00
Expand Energy	0	6	15	3	2.88

W&T Offshore currently has a consensus target price of $4.25, indicating a potential upside of 13.79%. Expand Energy has a consensus target price of $127.42, indicating a potential upside of 46.39%. Given Expand Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Expand Energy is more favorable than W&T Offshore.

Summary

Expand Energy beats W&T Offshore on 15 of the 17 factors compared between the two stocks.

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 Expand Energy

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.