enCore Energy (NASDAQ:EU – Get Free Report) and W&T Offshore (NYSE:WTI – Get Free Report) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.
Insider & Institutional Ownership
20.9% of enCore Energy shares are owned by institutional investors. Comparatively, 42.9% of W&T Offshore shares are owned by institutional investors. 3.0% of enCore Energy shares are owned by insiders. Comparatively, 35.9% 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 will outperform the market over the long term.
Valuation & Earnings
This table compares enCore Energy and W&T Offshore”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| enCore Energy | $55.25 million | 3.42 | -$56.86 million | ($0.33) | -2.94 |
| W&T Offshore | $501.46 million | 1.18 | -$150.06 million | ($0.73) | -5.36 |
enCore Energy has higher earnings, but lower revenue than W&T Offshore. W&T Offshore is trading at a lower price-to-earnings ratio than enCore Energy, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
enCore Energy has a beta of 2.13, meaning that its share price is 113% more volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.
Dividends
enCore Energy pays an annual dividend of $0.47 per share and has a dividend yield of 48.2%. W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 1.0%. enCore Energy pays out -141.8% 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. enCore Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares enCore Energy and W&T Offshore’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| enCore Energy | -112.82% | -28.00% | -17.09% |
| W&T Offshore | -19.32% | N/A | -2.59% |
Analyst Recommendations
This is a breakdown of recent recommendations for enCore Energy and W&T Offshore, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| enCore Energy | 2 | 0 | 2 | 1 | 2.40 |
| W&T Offshore | 1 | 1 | 1 | 0 | 2.00 |
enCore Energy presently has a consensus target price of $2.90, suggesting a potential upside of 198.23%. W&T Offshore has a consensus target price of $4.25, suggesting a potential upside of 8.56%. Given enCore Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe enCore Energy is more favorable than W&T Offshore.
Summary
enCore Energy beats W&T Offshore on 11 of the 17 factors compared between the two stocks.
About enCore Energy
enCore Energy Corp. engages in the acquisition, exploration, and development of uranium resource properties in the United States. It holds a 100% interest in Crownpoint and Hosta Butte uranium project area covers 3,020 acres located in the Grants Uranium Belt, New Mexico. The company also holds interest in the Marquez-Juan Tafoya property comprises 14,582 acres located in McKinley and Sandoval counties of New Mexico; and the Nose Rock project comprising 42 owned unpatented lode mining claims comprising approximately 800 acres located in McKinley County, New Mexico. In addition, it holds interest in the White Canyon District and Utah property package, including the Geitus, Blue Jay, Marcy Look, and Cedar Mountain projects located to the northwest of the White Mesa Mill at Blanding County, Utah. Further, the company holds a 100% interest in Dewey Burdock project comprises approximately 12,613 surface acres and 16,962 net mineral acres located in South Dakota; Gas Hills project consists of approximately 1,280 surface acres and 12,960 net mineral acres of unpatented lode mining claims located in Wyoming; and West Largo project consist of approximately 3,840 acres located in McKinley County, New Mexico. Additionally, it holds a 100% interest in Ambrosia Lake – Treeline property consists of deeded mineral rights totaling 24,555 acres and unpatented mining claims covering approximately 1,700 acres; and Checkerboard mineral rights covering a land position of approximately 300,000 acres located in the Grants Uranium District. The company was formerly known as Wolfpack Gold Corp. and changed its name to enCore Energy Corp. in August 2014. enCore Energy Corp. is headquartered in Corpus Christi, Texas.
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.
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