Head to Head Survey: W&T Offshore (NYSE:WTI) & Black Stone Minerals (NYSE:BSM)

W&T Offshore (NYSE:WTI) and Black Stone Minerals (NYSE:BSM) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for W&T Offshore and Black Stone Minerals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
W&T Offshore 0 1 0 0 2.00
Black Stone Minerals 0 0 1 1 3.50

Black Stone Minerals has a consensus price target of $11.33, suggesting a potential upside of 11.88%. Given Black Stone Minerals’ stronger consensus rating and higher probable upside, analysts clearly believe Black Stone Minerals is more favorable than W&T Offshore.

Profitability

This table compares W&T Offshore and Black Stone 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%
Black Stone Minerals 31.42% 16.85% 9.18%

Valuation and Earnings

This table compares W&T Offshore and Black Stone Minerals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
W&T Offshore $534.90 million 0.98 $74.09 million $0.60 6.13
Black Stone Minerals $487.82 million 4.30 $214.37 million $1.16 8.73

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

Institutional and Insider Ownership

36.6% of W&T Offshore shares are held by institutional investors. Comparatively, 19.1% of Black Stone Minerals shares are held by institutional investors. 34.1% of W&T Offshore shares are held by insiders. Comparatively, 24.6% of Black Stone Minerals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

W&T Offshore has a beta of 3.16, meaning that its share price is 216% more volatile than the S&P 500. Comparatively, Black Stone Minerals has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.

Summary

Black Stone Minerals beats W&T Offshore on 11 of the 15 factors compared between the two stocks.

W&T Offshore Company Profile

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.

Black Stone Minerals Company Profile

Black Stone Minerals, L.P., together with its subsidiaries, owns and manages oil and natural gas mineral interests. It owns mineral interests in approximately 16.8 million gross acres, nonparticipating royalty interests in 1.8 million gross acres, and overriding royalty interests in 1.7 million gross acres located in 41 states in the United States. As of December 31, 2020, the company had a total estimated proved oil and natural gas reserves of 55,987 barrels of oil equivalent. Black Stone Minerals, L.P. was founded in 1876 and is based in Houston, Texas.

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