Critical Comparison: W&T Offshore (NYSE:WTI) versus Allied Resources (OTCMKTS:ALOD)

Allied Resources (OTCMKTS:ALODGet Free Report) and W&T Offshore (NYSE:WTIGet Free Report) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Institutional & Insider Ownership

42.9% of W&T Offshore shares are owned by institutional investors. 33.5% 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.

Analyst Ratings

This is a summary of current ratings for Allied Resources and W&T Offshore, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allied Resources 0 0 0 0 0.00
W&T Offshore 0 0 1 0 3.00

W&T Offshore has a consensus price target of $7.80, indicating a potential upside of 432.42%. Given W&T Offshore’s stronger consensus rating and higher probable upside, analysts plainly believe W&T Offshore is more favorable than Allied Resources.

Risk & Volatility

Allied Resources has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Allied Resources -145.27% -10.45% -8.47%
W&T Offshore -11.95% -775.16% -4.37%

Valuation and Earnings

This table compares Allied Resources and W&T Offshore”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allied Resources $130,000.00 5.00 -$270,000.00 ($0.04) -2.88
W&T Offshore $525.26 million 0.41 $15.60 million ($0.59) -2.48

W&T Offshore has higher revenue and earnings than Allied Resources. Allied 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

W&T Offshore beats Allied Resources on 10 of the 14 factors compared between the two stocks.

About Allied Resources

(Get Free Report)

Allied Resources, Inc., an independent oil and natural gas producer, engages in the exploration, development, production, and sale of oil and gas in the United States. It owns varying interests in a total of 145 wells situated on acreage of approximately 3,400 acres in Ritchie and Calhoun counties, West Virginia; and 10 wells situated on acreage of approximately 2,510 acres in Goliad, Edwards, and Jackson counties, Texas. The company was formerly known as General Allied Oil and Gas Co and changed its name to Allied Resources, Inc. in August 1998. Allied Resources, Inc. was founded in 1979 and is based in Salt Lake City, Utah.

About W&T Offshore

(Get Free Report)

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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