Whiting USA Trust II (OTCMKTS:WHZT) and Isramco (OTCMKTS:ISRL) Critical Review

Whiting USA Trust II (OTCMKTS:WHZT) and Isramco (NASDAQ:ISRL) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Whiting USA Trust II and Isramco, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whiting USA Trust II 0 0 0 0 N/A
Isramco 0 0 0 0 N/A

Dividends

Whiting USA Trust II pays an annual dividend of $0.56 per share and has a dividend yield of 47.9%. Isramco does not pay a dividend.

Profitability

This table compares Whiting USA Trust II and Isramco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Whiting USA Trust II 37.58% 128.65% 126.34%
Isramco 19.95% -194.85% 15.13%

Volatility & Risk

Whiting USA Trust II has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Isramco has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Earnings & Valuation

This table compares Whiting USA Trust II and Isramco’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Whiting USA Trust II $18.92 million 1.14 $18.11 million N/A N/A
Isramco $81.34 million 4.06 $17.93 million N/A N/A

Whiting USA Trust II has higher earnings, but lower revenue than Isramco.

Institutional & Insider Ownership

5.0% of Isramco shares are held by institutional investors. 73.3% of Isramco shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Whiting USA Trust II beats Isramco on 6 of the 11 factors compared between the two stocks.

About Whiting USA Trust II

Whiting USA Trust II holds a term net profits interest in the oil and gas producing properties located in the Permian Basin, Rocky Mountains, Gulf Coast, and Mid-Continent regions. As of December 31, 2018, its oil and gas properties included interests in approximately 367.8 net producing oil and natural gas wells located in 46 predominately mature fields with established production profiles in 10 states. The company was founded in 2011 and is based in Houston, Texas. Whiting USA Trust II is a subsidiary of Whiting Petroleum Corporation.

About Isramco

Isramco, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of oil and natural gas properties located onshore in the United States and offshore Israel. It operates in two segments, Oil and Gas Exploration and Production; and Production Services. The Oil and Gas Exploration and Production segment owns working interests in oil and gas wells in Louisiana, Texas, New Mexico, Oklahoma, Wyoming, Utah, and Colorado; and operates approximately 422 producing wells located primarily in Texas and New Mexico. It also has overriding royalty interests in the Tamar Field located in offshore Israel. This segment sells its oil and natural gas to independent marketers, oil and natural gas companies, and gas pipeline companies. The Production Services segment operates a fleet of production servicing rigs and trucks that provide a range of production services, including completion of newly-drilled wells; maintenance and workover of existing wells; fluid transportation; and related oilfield services, as well as plugging and abandonment of wells to oil and gas exploration and production companies. As of December 31, 2018, the company had estimated total proved oil, natural gas reserves, and natural gas liquids, which include approximately 40,267 thousand barrels (MBbls) of oil equivalent comprising 2,125 MBbls of oil; 223,915 million cubic feet of natural gas; and 823 MBbls of natural gas liquids, as well as 33 production servicing rigs primarily in Texas and New Mexico. Isramco, Inc. was founded in 1982 and is based in Houston, Texas.

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