Critical Review: W&T Offshore (NYSE:WTI) and Vitesse Energy (NYSE:VTS)
by Mitch Edgeman · The Markets DailyVitesse Energy (NYSE:VTS – Get Free Report) and W&T Offshore (NYSE:WTI – Get Free Report) are both small-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Profitability
This table compares Vitesse Energy and W&T Offshore’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vitesse Energy | -3.95% | -0.02% | -0.02% |
| W&T Offshore | -19.32% | N/A | -2.59% |
Analyst Recommendations
This is a summary of recent recommendations for Vitesse Energy and W&T Offshore, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vitesse Energy | 1 | 1 | 3 | 0 | 2.40 |
| W&T Offshore | 1 | 1 | 1 | 0 | 2.00 |
Vitesse Energy currently has a consensus price target of $20.50, indicating a potential upside of 20.14%. W&T Offshore has a consensus price target of $4.25, indicating a potential upside of 17.57%. Given Vitesse Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe Vitesse Energy is more favorable than W&T Offshore.
Valuation and Earnings
This table compares Vitesse Energy and W&T Offshore”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vitesse Energy | $273.99 million | 2.62 | $25.28 million | ($0.33) | -51.71 |
| W&T Offshore | $501.46 million | 1.09 | -$150.06 million | ($0.73) | -4.95 |
Vitesse Energy has higher earnings, but lower revenue than W&T Offshore. Vitesse 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.
Dividends
Vitesse Energy pays an annual dividend of $1.75 per share and has a dividend yield of 10.3%. W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Vitesse Energy pays out -530.3% of its earnings in the form of a dividend. W&T Offshore pays out -5.5% 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. Vitesse Energy has raised its dividend for 2 consecutive years. Vitesse Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Vitesse Energy has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.
Institutional & Insider Ownership
51.6% of Vitesse Energy shares are held by institutional investors. Comparatively, 42.9% of W&T Offshore shares are held by institutional investors. 13.9% of Vitesse Energy shares are held by insiders. Comparatively, 35.9% of W&T Offshore shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Vitesse Energy beats W&T Offshore on 13 of the 17 factors compared between the two stocks.
About Vitesse Energy
Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.
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.