Financial Contrast: Granite Ridge Resources (NYSE:GRNT) vs. W&T Offshore (NYSE:WTI)

Granite Ridge Resources (NYSE:GRNT) and W&T Offshore (NYSE:WTI) are both small-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Granite Ridge Resources and W&T Offshore, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	2	0	1	0	1.67
W&T Offshore	1	1	2	0	2.25

Granite Ridge Resources currently has a consensus price target of $11.00, indicating a potential upside of 129.89%. Given Granite Ridge Resources’ higher possible upside, equities analysts clearly believe Granite Ridge Resources is more favorable than W&T Offshore.

Volatility and Risk

Granite Ridge Resources has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Profitability

This table compares Granite Ridge Resources and W&T Offshore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	-7.13%	4.99%	2.65%
W&T Offshore	-27.23%	N/A	-4.12%

Insider and Institutional Ownership

31.6% of Granite Ridge Resources shares are held by institutional investors. Comparatively, 42.9% of W&T Offshore shares are held by institutional investors. 8.4% of Granite Ridge Resources shares are held by company insiders. Comparatively, 35.9% of W&T Offshore shares are held by company 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.

Dividends

Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 9.2%. W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Granite Ridge Resources pays out -176.0% of its earnings in the form of a dividend. W&T Offshore pays out -4.2% 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. Granite Ridge Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Granite Ridge Resources and W&T Offshore”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Ridge Resources	$455.64 million	1.39	$24.35 million	($0.25)	-19.14
W&T Offshore	$521.61 million	1.08	-$150.06 million	($0.95)	-3.97

Granite Ridge Resources has higher earnings, but lower revenue than W&T Offshore. Granite Ridge Resources 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.

Summary

Granite Ridge Resources beats W&T Offshore on 9 of the 16 factors compared between the two stocks.

About Granite Ridge Resources

Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, 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.