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 better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.
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% |
Valuation & Earnings
This table compares Obsidian Energy and W&T Offshore’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Obsidian Energy | $220.00 million | 2.61 | -$576.07 million | $4.17 | 1.70 |
| W&T Offshore | $532.66 million | 0.65 | $15.60 million | $0.10 | 23.50 |
Analyst Ratings
This is a summary 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, suggesting a potential upside of 231.91%. Given W&T Offshore’s higher possible upside, analysts clearly believe W&T Offshore is more favorable than Obsidian Energy.
Volatility and Risk
Obsidian Energy has a beta of 2.47, meaning that its share price is 147% more volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.
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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
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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