W&T Offshore (NYSE:WTI – Get Free Report) and Torm (NASDAQ:TRMD – Get Free Report) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
42.9% of W&T Offshore shares are held by institutional investors. Comparatively, 73.9% of Torm shares are held by institutional investors. 35.9% of W&T Offshore shares are held by insiders. Comparatively, 0.4% of Torm shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares W&T Offshore and Torm”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| W&T Offshore | $501.46 million | 1.12 | -$150.06 million | ($0.73) | -5.12 |
| Torm | $1.76 billion | 2.00 | $285.30 million | $6.07 | 5.67 |
Torm has higher revenue and earnings than W&T Offshore. W&T Offshore is trading at a lower price-to-earnings ratio than Torm, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for W&T Offshore and Torm, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| W&T Offshore | 1 | 1 | 1 | 0 | 2.00 |
| Torm | 0 | 1 | 2 | 1 | 3.00 |
W&T Offshore currently has a consensus target price of $4.25, indicating a potential upside of 13.79%. Torm has a consensus target price of $38.00, indicating a potential upside of 10.40%. Given W&T Offshore’s higher possible upside, research analysts plainly believe W&T Offshore is more favorable than Torm.
Risk & Volatility
W&T Offshore has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Torm has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500.
Dividends
W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Torm pays an annual dividend of $7.00 per share and has a dividend yield of 20.3%. W&T Offshore pays out -5.5% of its earnings in the form of a dividend. Torm pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares W&T Offshore and Torm’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| W&T Offshore | -19.32% | N/A | -2.59% |
| Torm | 35.51% | 27.24% | 17.96% |
Summary
Torm beats W&T Offshore on 13 of the 17 factors compared between the two stocks.
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.
About Torm
TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil. The Marine Exhaust segment engages in developing and producing advanced and green marine equipment. TORM plc was founded in 1889 and is based in London, the United Kingdom.
Receive News & Ratings for W&T Offshore Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for W&T Offshore and related companies with MarketBeat.com's FREE daily email newsletter.
