Head-To-Head Analysis: W&T Offshore (NYSE:WTI) & Hempstract (OTCMKTS:HPST)

W&T Offshore (NYSE:WTI) and Hempstract (OTCMKTS:HPST) 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, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
W&T Offshore	-11.95%	-775.16%	-4.37%
Hempstract	N/A	N/A	N/A

Insider and Institutional Ownership

42.9% of W&T Offshore shares are owned by institutional investors. 33.5% of W&T Offshore shares are owned by insiders. Comparatively, 28.1% of Hempstract shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for W&T Offshore and Hempstract, as reported by MarketBeat.

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

W&T Offshore presently has a consensus target price of $7.80, suggesting a potential upside of 371.30%. Given W&T Offshore’s stronger consensus rating and higher probable upside, equities analysts clearly believe W&T Offshore is more favorable than Hempstract.

Valuation and Earnings

This table compares W&T Offshore and Hempstract”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W&T Offshore	$537.26 million	0.45	$15.60 million	($0.43)	-3.85
Hempstract	N/A	N/A	N/A	N/A	N/A

W&T Offshore has higher revenue and earnings than Hempstract.

Volatility & Risk

W&T Offshore has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Hempstract has a beta of -4.04, meaning that its share price is 504% less volatile than the S&P 500.

Summary

W&T Offshore beats Hempstract on 7 of the 10 factors compared between the two stocks.

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.

About Hempstract

Hempstract, Inc. produces and sells cannabidiol (CBD) and cannabigerol solutions in the United States. It offers CBD isolate powder and distillate oil. The company was formerly known as Riverdale Oil and Gas Corporation and changed its name to Hempstract, Inc. in November 2020. Hempstract, Inc. is based in Warden, Washington.