Critical Analysis: ENI (NYSE:E) versus W&T Offshore (NYSE:WTI)

ENI (NYSE:E) and W&T Offshore (NYSE:WTI) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ENI	5.00%	14.91%	5.85%
W&T Offshore	2.93%	-71.70%	-1.95%

Dividends

ENI pays an annual dividend of $1.45 per share and has a dividend yield of 4.5%. W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 1.6%. ENI pays out 48.0% of its earnings in the form of a dividend. W&T Offshore pays out 40.0% 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. ENI has increased its dividend for 1 consecutive years. ENI is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares ENI 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
ENI	$102.67 billion	0.53	$5.16 billion	$3.02	10.73
W&T Offshore	$532.66 million	0.69	$15.60 million	$0.10	25.05

ENI has higher revenue and earnings than W&T Offshore. ENI 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.

Volatility and Risk

ENI has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Insider & Institutional Ownership

1.2% of ENI shares are owned by institutional investors. Comparatively, 42.9% of W&T Offshore shares are owned by institutional investors. 0.0% of ENI shares are owned by insiders. Comparatively, 33.5% of W&T Offshore shares are owned 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 recommendations for ENI and W&T Offshore, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENI	0	2	1	0	2.33
W&T Offshore	0	0	1	0	3.00

W&T Offshore has a consensus price target of $7.90, indicating a potential upside of 215.37%. Given W&T Offshore’s stronger consensus rating and higher possible upside, analysts clearly believe W&T Offshore is more favorable than ENI.

About ENI

Eni S.p.A. operates as an integrated energy company worldwide. It engages in exploration, development, extracting, manufacturing, and marketing crude oil and natural gas, oil-based fuels, chemical products, and gas-fired power, as well as energy products from renewable sources. The company operates through Exploration & Production; Global Gas & LNG Portfolio (GGP); Refining & Marketing and Chemicals; Plenitude & Power; and Corporate and Other Activities segments. The Exploration & Production segment engages in research, development, and production of oil, condensates, and natural gas; and forestry conservation and CO2 capture and storage projects. The GGP segment is involved in the supply and sale of wholesale natural gas through pipeline; and international transport, and purchase and marketing of liquefied natural gas. The Refining & Marketing and Chemicals segment supplies, processes, distributes, and markets fuels and chemicals. The Plenitude & Power segment engages in the retail sale of gas, electricity, and related services; production and wholesale sale of electricity from thermoelectric and renewable plants; and provision of services for E-mobility. The Corporate and Other Activities segment is involved in the research and development, new technologies, business digitalization, and environmental activities. The company was founded in 1953 and is headquartered in Rome, Italy.

About W&T Offshore

W&T Offshore, Inc., an independent oil and natural gas producer, engages in the acquisition, exploration, and development of oil and natural gas properties in the Gulf of Mexico. The company sells crude oil and condensate, natural gas liquids, and natural gas. W&T Offshore, Inc. was founded in 1983 and is headquartered in Houston, Texas.