Head to Head Comparison: Mexco Energy (NYSE:MXC) & W&T Offshore (NYSE:WTI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mexco Energy	18.73%	7.57%	6.94%
W&T Offshore	-11.95%	-775.16%	-4.37%

Earnings and Valuation

This table compares Mexco 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
Mexco Energy	$6.61 million	3.56	$1.35 million	$0.63	18.20
W&T Offshore	$537.26 million	0.48	$15.60 million	($0.43)	-4.10

W&T Offshore has higher revenue and earnings than Mexco Energy. W&T Offshore is trading at a lower price-to-earnings ratio than Mexco Energy, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

5.9% of Mexco Energy shares are held by institutional investors. Comparatively, 42.9% of W&T Offshore shares are held by institutional investors. 53.1% of Mexco Energy shares are held by insiders. Comparatively, 33.5% of W&T Offshore shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Mexco Energy and W&T Offshore, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mexco Energy	0	0	0	0	0.00
W&T Offshore	0	0	1	0	3.00

W&T Offshore has a consensus target price of $7.80, indicating a potential upside of 341.93%. Given W&T Offshore’s stronger consensus rating and higher probable upside, analysts clearly believe W&T Offshore is more favorable than Mexco Energy.

Risk & Volatility

Mexco Energy has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

About Mexco Energy

Mexco Energy Corporation, an independent oil and gas company, engages in the acquisition, exploration, development, and production of natural gas, crude oil, condensate, and natural gas liquids in the United States. It owns partial interests in approximately 6,400 gross producing wells located in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio. It also owned leasehold mineral, royalty, and other interests in approximately 2,768 net acres. The company was formerly known as Miller Oil Company and changed its name to Mexco Energy Corporation in April 1980. Mexco Energy Corporation was incorporated in 1972 and is based in Midland, 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.