Analyzing Clayton Williams Energy (CWEI) & EXCO Resources NL (XCO)
Clayton Williams Energy (NYSE: CWEI) and EXCO Resources NL (NYSE:XCO) are both oil & gas exploration and production – nec companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.
Risk & Volatility
Clayton Williams Energy has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500. Comparatively, EXCO Resources NL has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.
This table compares Clayton Williams Energy and EXCO Resources NL’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Clayton Williams Energy||-16.83%||-63.50%||-7.44%|
|EXCO Resources NL||25.72%||N/A||-4.60%|
Insider & Institutional Ownership
67.8% of Clayton Williams Energy shares are owned by institutional investors. Comparatively, 56.8% of EXCO Resources NL shares are owned by institutional investors. 36.4% of Clayton Williams Energy shares are owned by company insiders. Comparatively, 2.0% of EXCO Resources NL shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and price targets for Clayton Williams Energy and EXCO Resources NL, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Clayton Williams Energy||0||1||0||0||2.00|
|EXCO Resources NL||0||0||0||0||N/A|
Earnings & Valuation
This table compares Clayton Williams Energy and EXCO Resources NL’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Clayton Williams Energy||N/A||N/A||N/A||($21.71)||-6.08|
|EXCO Resources NL||$271.00 million||0.07||-$225.25 million||$3.91||0.21|
Clayton Williams Energy has higher revenue, but lower earnings than EXCO Resources NL. Clayton Williams Energy is trading at a lower price-to-earnings ratio than EXCO Resources NL, indicating that it is currently the more affordable of the two stocks.
EXCO Resources NL beats Clayton Williams Energy on 5 of the 8 factors compared between the two stocks.
About Clayton Williams Energy
Clayton Williams Energy, Inc. is an independent oil and gas company engaged in the exploration for and production of oil and natural gas primarily in its core area in Southern Reeves County, Texas. The Company operates through two segments: oil and gas exploration and production, and contract drilling services. The Company focuses on developmental drilling in prolific oil shale provinces. The Company has holdings in the oil shale plays in the United States, the Wolfcamp Shale in the Southern Delaware Basin of West Texas. Its exploration program consists of generating exploratory prospects, leasing the acreage related to these prospects, drilling exploratory wells on these prospects to determine if recoverable oil and gas reserves exist, drilling developmental wells on these prospects and producing and selling any resulting oil and gas production. The Permian Basin is a sedimentary basin in West Texas and Southeastern New Mexico.
About EXCO Resources NL
EXCO Resources, Inc. (EXCO) is an oil and natural gas company. The Company is engaged in the exploration, exploitation, acquisition, development and production of onshore United States oil and natural gas properties with a focus on shale resource plays. The Company’s principal operations are conducted in certain United States oil and natural gas areas, including Texas, Louisiana and the Appalachia region. The Company holds acreage positions in approximately three shale plays in the United States, including East Texas and North Louisiana, South Texas and Appalachia. In East Texas and North Louisiana, the Company holds approximately 83,800 net acres in the Haynesville and Bossier shales. In South Texas, it holds approximately 65,800 net acres in the Eagle Ford shale. In Appalachia, the Company holds approximately 137,400 net acres prospective in the Marcellus shale.
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