W&T Offshore (NYSE:WTI – Get Free Report) and Chesapeake Granite Wash Trust (OTCMKTS:CHKR – Get Free Report) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for W&T Offshore and Chesapeake Granite Wash Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| W&T Offshore | 0 | 0 | 1 | 0 | 3.00 |
| Chesapeake Granite Wash Trust | 0 | 0 | 0 | 0 | 0.00 |
W&T Offshore presently has a consensus price target of $7.80, indicating a potential upside of 368.47%. Given W&T Offshore’s stronger consensus rating and higher probable upside, analysts plainly believe W&T Offshore is more favorable than Chesapeake Granite Wash Trust.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| W&T Offshore | $537.26 million | 0.46 | $15.60 million | ($0.43) | -3.87 |
| Chesapeake Granite Wash Trust | $10.69 million | 2.14 | $8.05 million | $0.10 | 4.90 |
W&T Offshore has higher revenue and earnings than Chesapeake Granite Wash Trust. W&T Offshore is trading at a lower price-to-earnings ratio than Chesapeake Granite Wash Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares W&T Offshore and Chesapeake Granite Wash Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| W&T Offshore | -11.95% | -775.16% | -4.37% |
| Chesapeake Granite Wash Trust | 64.37% | 42.41% | 42.41% |
Institutional & Insider Ownership
42.9% of W&T Offshore shares are held by institutional investors. 33.5% of W&T Offshore shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
W&T Offshore has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Chesapeake Granite Wash Trust has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.
Dividends
W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 2.4%. Chesapeake Granite Wash Trust pays an annual dividend of $0.04 per share and has a dividend yield of 8.2%. W&T Offshore pays out -9.3% of its earnings in the form of a dividend. Chesapeake Granite Wash Trust pays out 40.0% 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.
Summary
W&T Offshore beats Chesapeake Granite Wash Trust on 9 of the 16 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 Chesapeake Granite Wash Trust
Chesapeake Granite Wash Trust owns royalty interests in oil, natural gas liquids, and natural gas properties located in the Colony Granite Wash play in Washita County in the Anadarko Basin of Western Oklahoma. It has royalty interests in 69 producing wells and 118 development wells, and in approximately 26,400 net acres of area. The company was incorporated in 2011 and is based in Houston, Texas.
Receive News & Ratings for W&T Offshore Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for W&T Offshore and related companies with MarketBeat.com's FREE daily email newsletter.
