Clayton Williams Energy (NYSE: CWEI) and EXCO Resources NL (NYSE:XCO) are both companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Earnings & Valuation

This table compares Clayton Williams Energy and EXCO Resources NL’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Clayton Williams Energy N/A N/A N/A ($21.71) -6.08
EXCO Resources NL $271.00 million 0.07 -$225.25 million $3.91 0.21

Clayton Williams Energy has higher revenue, but lower earnings than EXCO Resources NL. Clayton Williams Energy is trading at a lower price-to-earnings ratio than EXCO Resources NL, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Clayton Williams Energy and EXCO Resources NL’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clayton Williams Energy -16.83% -63.50% -7.44%
EXCO Resources NL 25.72% N/A -4.60%

Volatility & Risk

Clayton Williams Energy has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500. Comparatively, EXCO Resources NL has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Insider & Institutional Ownership

67.8% of Clayton Williams Energy shares are owned by institutional investors. Comparatively, 56.0% of EXCO Resources NL shares are owned by institutional investors. 36.4% of Clayton Williams Energy shares are owned by company insiders. Comparatively, 2.0% of EXCO Resources NL shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Clayton Williams Energy and EXCO Resources NL, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clayton Williams Energy 0 1 0 0 2.00
EXCO Resources NL 0 0 0 0 N/A

Summary

EXCO Resources NL beats Clayton Williams Energy on 5 of the 8 factors compared between the two stocks.

About Clayton Williams Energy

Clayton Williams Energy, Inc. is an independent oil and gas company engaged in the exploration for and production of oil and natural gas primarily in its core area in Southern Reeves County, Texas. The Company operates through two segments: oil and gas exploration and production, and contract drilling services. The Company focuses on developmental drilling in prolific oil shale provinces. The Company has holdings in the oil shale plays in the United States, the Wolfcamp Shale in the Southern Delaware Basin of West Texas. Its exploration program consists of generating exploratory prospects, leasing the acreage related to these prospects, drilling exploratory wells on these prospects to determine if recoverable oil and gas reserves exist, drilling developmental wells on these prospects and producing and selling any resulting oil and gas production. The Permian Basin is a sedimentary basin in West Texas and Southeastern New Mexico.

About EXCO Resources NL

EXCO Resources, Inc. (EXCO) is an oil and natural gas company. The Company is engaged in the exploration, exploitation, acquisition, development and production of onshore United States oil and natural gas properties with a focus on shale resource plays. The Company’s principal operations are conducted in certain United States oil and natural gas areas, including Texas, Louisiana and the Appalachia region. The Company holds acreage positions in approximately three shale plays in the United States, including East Texas and North Louisiana, South Texas and Appalachia. In East Texas and North Louisiana, the Company holds approximately 83,800 net acres in the Haynesville and Bossier shales. In South Texas, it holds approximately 65,800 net acres in the Eagle Ford shale. In Appalachia, the Company holds approximately 137,400 net acres prospective in the Marcellus shale.

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