W&T Offshore (NYSE:WTI – Get Free Report) and Obsidian Energy (OTCMKTS:OBELF – Get Free Report) are both small-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares W&T Offshore and Obsidian Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| W&T Offshore | 2.93% | -71.70% | -1.95% |
| Obsidian Energy | 99.13% | 78.07% | 35.32% |
Insider & Institutional Ownership
42.9% of W&T Offshore shares are owned by institutional investors. Comparatively, 0.0% of Obsidian Energy shares are owned by institutional investors. 33.5% of W&T Offshore shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| W&T Offshore | $532.66 million | 0.61 | $15.60 million | $0.10 | 22.30 |
| Obsidian Energy | $220.00 million | 3.02 | -$576.07 million | $4.17 | 1.97 |
W&T Offshore has higher revenue and earnings than Obsidian Energy. Obsidian Energy is trading at a lower price-to-earnings ratio than W&T Offshore, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for W&T Offshore and Obsidian Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| W&T Offshore | 0 | 0 | 1 | 0 | 3.00 |
| Obsidian Energy | 0 | 0 | 0 | 0 | N/A |
W&T Offshore currently has a consensus target price of $7.80, indicating a potential upside of 249.78%. Given W&T Offshore’s higher probable upside, equities research analysts clearly believe W&T Offshore is more favorable than Obsidian Energy.
Risk and Volatility
W&T Offshore has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Obsidian Energy has a beta of 2.47, suggesting that its stock price is 147% more volatile than the S&P 500.
Summary
W&T Offshore beats Obsidian Energy on 7 of the 13 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 and condensate, natural gas liquids, and natural gas. W&T Offshore, Inc. was founded in 1983 and is headquartered in Houston, Texas.
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.
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