Cenovus Energy (NYSE:CVE – Get Free Report) and W&T Offshore (NYSE:WTI – Get Free Report) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Analyst Ratings
This is a summary of current ratings and price targets for Cenovus Energy and W&T Offshore, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cenovus Energy | 0 | 1 | 13 | 2 | 3.06 |
| W&T Offshore | 1 | 0 | 1 | 1 | 2.67 |
Cenovus Energy currently has a consensus target price of $39.00, suggesting a potential upside of 41.43%. W&T Offshore has a consensus target price of $4.25, suggesting a potential upside of 38.66%. Given Cenovus Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cenovus Energy is more favorable than W&T Offshore.
Risk and Volatility
Cenovus Energy has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.
Earnings & Valuation
This table compares Cenovus Energy and W&T Offshore”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cenovus Energy | $58.03 billion | 0.86 | $2.81 billion | $3.39 | 8.13 |
| W&T Offshore | $601.43 million | 0.79 | -$150.06 million | ($0.34) | -9.01 |
Cenovus Energy has higher revenue and earnings than W&T Offshore. W&T Offshore is trading at a lower price-to-earnings ratio than Cenovus Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cenovus Energy and W&T Offshore’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cenovus Energy | 15.40% | 26.15% | 13.36% |
| W&T Offshore | -8.44% | N/A | -1.72% |
Dividends
Cenovus Energy pays an annual dividend of $0.63 per share and has a dividend yield of 2.3%. W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 1.3%. Cenovus Energy pays out 18.6% of its earnings in the form of a dividend. W&T Offshore pays out -11.8% 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. Cenovus Energy has increased its dividend for 4 consecutive years. Cenovus Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
51.2% of Cenovus Energy shares are held by institutional investors. Comparatively, 42.9% of W&T Offshore shares are held by institutional investors. 35.9% of W&T Offshore shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Cenovus Energy beats W&T Offshore on 16 of the 18 factors compared between the two stocks.
About Cenovus Energy
Cenovus Energy Inc., together with its subsidiaries, develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally. The company operates through Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining segments. The Oil Sands segment develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. This segment assets include Foster Creek, Christina Lake, and Sunrise projects, as well as Lloydminster thermal and conventional heavy oil assets. The Conventional segment holds natural gas liquids and natural gas assets primarily located in Elmworth-Wapiti, Kaybob-Edson, Clearwater, and Rainbow Lake operating in Alberta and British Columbia, as well as interests in various natural gas processing facilities. The offshore segment engages in offshore operation, exploration, and development activities in China and the East Coast of Canada. The Canadian Refining segment owns and operates Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt, and other ancillary products, as well as Bruderheim crude-by-rail terminal and ethanol plants. The U.S. Refining segment refines crude oil to produce gasoline, diesel, jet fuel, asphalt, and other products. Cenovus Energy Inc. is headquartered in Calgary, Canada.
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.
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