TransAtlantic Petroleum (TAT) versus W&T Offshore (WTI) Financial Comparison

TransAtlantic Petroleum (NYSE: TAT) and W&T Offshore (NYSE:WTI) are both small-cap oil & gas exploration and production – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
TransAtlantic Petroleum 4.59% 5.05% 1.33%
W&T Offshore 15.38% -10.86% 7.84%

Analyst Recommendations

This is a breakdown of current ratings and price targets for TransAtlantic Petroleum and W&T Offshore, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransAtlantic Petroleum 0 1 0 0 2.00
W&T Offshore 1 2 0 0 1.67

W&T Offshore has a consensus target price of $2.63, indicating a potential downside of 16.93%. Given W&T Offshore’s higher possible upside, analysts clearly believe W&T Offshore is more favorable than TransAtlantic Petroleum.

Valuation and Earnings

This table compares TransAtlantic Petroleum and W&T Offshore’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
TransAtlantic Petroleum N/A N/A N/A ($0.55) -1.36
W&T Offshore $399.99 million 1.09 -$249.02 million $0.52 6.08

TransAtlantic Petroleum has higher revenue, but lower earnings than W&T Offshore. TransAtlantic Petroleum 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.

Risk & Volatility

TransAtlantic Petroleum has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 2.51, indicating that its stock price is 151% more volatile than the S&P 500.

Insider and Institutional Ownership

49.3% of W&T Offshore shares are held by institutional investors. 32.6% of W&T Offshore shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

W&T Offshore beats TransAtlantic Petroleum on 8 of the 10 factors compared between the two stocks.

TransAtlantic Petroleum Company Profile

TransAtlantic Petroleum Ltd. is a holding company. The Company is an international oil and natural gas company engaged in acquisition, exploration, development and production. Its segments include Turkey and Bulgaria. The Company holds interests in approximately 880,000 and 567,000 net acres of developed and undeveloped oil and natural gas properties in Turkey and Bulgaria, respectively. The Company holds interests in over 20 onshore and offshore exploration licenses and approximately 25 onshore production leases covering a total of over 1.4 million gross acres in Turkey. All of its oil production is concentrated in southeastern Turkey, primarily in the Arpatepe, Bahar, Goksu and Selmo oil fields, and its natural gas production is concentrated in the Thrace Basin, which is located in northwestern Turkey near Istanbul. The Company holds interests in an onshore exploration license and an onshore production concession covering a total of approximately 567,110 acres in Bulgaria.

W&T Offshore Company Profile

W&T Offshore, Inc. is an independent oil and natural gas producer. The Company is engaged in the exploration, development and acquisition of oil and natural gas properties in the Gulf of Mexico. As of December 31, 2016, the Company had interests in offshore leases covering approximately 750,000 gross acres (450,000 net acres) spanning across the Outer Continental Shelf (OCS) off the coasts of Louisiana, Texas, Mississippi and Alabama. Its producing fields are located in federal and state waters in the Gulf of Mexico in water depths ranging from less than 10 feet up to 7,300 feet. Its fields include Ship Shoal 349 Field (Mahogany), Fairway Field, Viosca Knoll 783 Field (Viosca Knoll 783 (Tahoe) and Viosca Knoll 784 (SE Tahoe)), Mississippi Canyon 782 Field (Dantzler), Mississippi Canyon 698 Field (Big Bend), Mississippi Canyon 243 Field (Matterhorn), Ewing Bank 910, Brazos A-133 Field and Viosca Knoll 823 Field (Virgo).

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