Contrasting W&T Offshore (NYSE:WTI) & PHX Minerals (NYSE:PHX)

W&T Offshore (NYSE:WTI) and PHX Minerals (NYSE:PHX) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

36.6% of W&T Offshore shares are held by institutional investors. Comparatively, 86.7% of PHX Minerals shares are held by institutional investors. 34.1% of W&T Offshore shares are held by company insiders. Comparatively, 5.7% of PHX Minerals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares W&T Offshore and PHX Minerals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
W&T Offshore $534.90 million 0.81 $74.09 million $0.60 5.07
PHX Minerals $28.97 million 1.69 -$23.95 million $0.05 43.60

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

Profitability

This table compares W&T Offshore and PHX Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
W&T Offshore 31.40% -21.21% 4.67%
PHX Minerals -78.94% 3.78% 2.36%

Analyst Recommendations

This is a breakdown of current ratings and target prices for W&T Offshore and PHX Minerals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
W&T Offshore 0 1 0 0 2.00
PHX Minerals 0 1 1 0 2.50

PHX Minerals has a consensus target price of $2.23, indicating a potential upside of 2.06%. Given PHX Minerals’ stronger consensus rating and higher probable upside, analysts plainly believe PHX Minerals is more favorable than W&T Offshore.

Volatility and Risk

W&T Offshore has a beta of 3.16, indicating that its stock price is 216% more volatile than the S&P 500. Comparatively, PHX Minerals has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Summary

W&T Offshore beats PHX Minerals on 8 of the 14 factors compared between the two stocks.

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, natural gas liquids, and natural gas. It holds working interest in approximately 43 offshore fields in federal and state waters. The company also owns interest in approximately 146 offshore structures. It has interests in offshore leases covering approximately 506,000 net acres spanning across the Outer Continental Shelf off the coasts of Louisiana, Texas, Mississippi, and Alabama. As of December 31, 2020, its total proved reserves were 144.4 million barrels of oil equivalent. The company was founded in 1983 and is headquartered in Houston, Texas.

About PHX Minerals

PHX Minerals Inc. operates as a natural gas and oil mineral company in the United States. The company produces and sells natural gas, crude oil, and natural gas liquids. It owns approximately 253,000 net mineral acres principally located in Oklahoma, North Dakota, Texas, New Mexico, and Arkansas. As of September 30, 2020, it had proved reserves of 57.7 Bcfe. It sells its products to pipeline and marketing companies. The company was formerly known as Panhandle Oil and Gas Inc. and changed its name to PHX Minerals Inc. in October 2020. PHX Minerals Inc. was founded in 1926 and is based in Oklahoma City, Oklahoma.

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