W&T Offshore (NYSE:WTI) and GulfSlope Energy (OTCMKTS:GSPE) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
W&T Offshore 30.83% -29.98% 13.30%
GulfSlope Energy N/A N/A -13.13%

Insider and Institutional Ownership

60.5% of W&T Offshore shares are held by institutional investors. Comparatively, 0.0% of GulfSlope Energy shares are held by institutional investors. 33.6% of W&T Offshore shares are held by company insiders. Comparatively, 44.3% of GulfSlope Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

W&T Offshore has a beta of 3.05, indicating that its stock price is 205% more volatile than the S&P 500. Comparatively, GulfSlope Energy has a beta of 2.85, indicating that its stock price is 185% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for W&T Offshore and GulfSlope Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
W&T Offshore 1 1 3 0 2.40
GulfSlope Energy 0 0 0 0 N/A

W&T Offshore currently has a consensus target price of $9.00, suggesting a potential upside of 118.45%. Given W&T Offshore’s higher possible upside, equities analysts plainly believe W&T Offshore is more favorable than GulfSlope Energy.

Valuation & Earnings

This table compares W&T Offshore and GulfSlope Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
W&T Offshore $580.71 million 1.00 $248.83 million $1.01 4.08
GulfSlope Energy N/A N/A -$2.63 million N/A N/A

W&T Offshore has higher revenue and earnings than GulfSlope Energy.

Summary

W&T Offshore beats GulfSlope Energy on 8 of the 10 factors compared between the two stocks.

W&T Offshore Company Profile

W&T Offshore, Inc., an independent oil and natural gas producer, acquires, explores for, and develops oil and natural gas properties in the Gulf of Mexico. The company sells crude oil, natural gas liquids, and natural gas. It holds working interests in approximately 49 offshore fields in federal and state waters. The company also owns interests in approximately 135 offshore structures. It has interests in offshore leases covering approximately 370,000 net acres spanning across the Outer Continental Shelf off the coasts of Louisiana, Texas, Mississippi, and Alabama. As of December 31, 2017, its total proved reserves were 74.2 million barrels of oil equivalent. W&T Offshore, Inc. was founded in 1983 and is headquartered in Houston, Texas.

GulfSlope Energy Company Profile

GulfSlope Energy, Inc., an independent oil and natural gas exploration company, focuses on the exploration and development of oil and natural gas properties in the Gulf of Mexico federal waters offshore Louisiana in the United States. It has leased 14 federal outer continental shelf blocks and licensed 2.2 million acres of three-dimensional seismic data in its area of concentration. The company was formerly known as Plan A Promotions, Inc. and changed its name to GulfSlope Energy, Inc. in April 2012. GulfSlope Energy, Inc. was founded in 2003 and is headquartered in Houston, Texas.

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