Head-To-Head Comparison: W&T Offshore (WTI) and Callon Petroleum (CPE)

W&T Offshore (NYSE: WTI) and Callon Petroleum (NYSE:CPE) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

48.1% of W&T Offshore shares are held by institutional investors. 32.6% of W&T Offshore shares are held by insiders. Comparatively, 0.8% of Callon Petroleum shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares W&T Offshore and Callon Petroleum’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
W&T Offshore $399.99 million 1.16 -$249.02 million $0.52 6.48
Callon Petroleum $200.85 million 11.40 -$91.81 million $0.44 25.77

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for W&T Offshore and Callon Petroleum, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
W&T Offshore 1 2 0 0 1.67
Callon Petroleum 0 2 21 0 2.91

W&T Offshore currently has a consensus target price of $2.63, indicating a potential downside of 22.11%. Callon Petroleum has a consensus target price of $17.50, indicating a potential upside of 54.32%. Given Callon Petroleum’s stronger consensus rating and higher probable upside, analysts clearly believe Callon Petroleum is more favorable than W&T Offshore.

Profitability

This table compares W&T Offshore and Callon Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
W&T Offshore 15.38% -10.86% 7.84%
Callon Petroleum 30.20% 4.05% 2.96%

Volatility & Risk

W&T Offshore has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500. Comparatively, Callon Petroleum has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Summary

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

About W&T Offshore

W&T Offshore, Inc. is an independent oil and natural gas producer. The Company is engaged in the exploration, development and acquisition of oil and natural gas properties in the Gulf of Mexico. As of December 31, 2016, the Company had interests in offshore leases covering approximately 750,000 gross acres (450,000 net acres) spanning across the Outer Continental Shelf (OCS) off the coasts of Louisiana, Texas, Mississippi and Alabama. Its producing fields are located in federal and state waters in the Gulf of Mexico in water depths ranging from less than 10 feet up to 7,300 feet. Its fields include Ship Shoal 349 Field (Mahogany), Fairway Field, Viosca Knoll 783 Field (Viosca Knoll 783 (Tahoe) and Viosca Knoll 784 (SE Tahoe)), Mississippi Canyon 782 Field (Dantzler), Mississippi Canyon 698 Field (Big Bend), Mississippi Canyon 243 Field (Matterhorn), Ewing Bank 910, Brazos A-133 Field and Viosca Knoll 823 Field (Virgo).

About Callon Petroleum

Callon Petroleum Company is an independent oil and natural gas company. The Company is engaged in the exploration, development, acquisition and production of oil and natural gas properties. The Company focuses on the acquisition and development of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and southeastern New Mexico and consisted of three primary sub-basins: the Midland Basin, the Delaware Basin, and the Central Basin Platform as of December 31, 2016. The Company’s drilling activity focuses on the horizontal development of various prospective intervals in the Midland Basin, including multiple levels of the Wolfcamp formation and the Lower Spraberry shale. It owns additional immaterial properties in Louisiana. As of December 31, 2016, the Company had owned leaseholds in 39,570 net acres in the Permian Basin, all of which was located in the Midland Basin.

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