Torm (NASDAQ:TRMD – Get Free Report) and W&T Offshore (NYSE:WTI – Get Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.
Risk and Volatility
Torm has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.
Insider and Institutional Ownership
73.9% of Torm shares are owned by institutional investors. Comparatively, 42.9% of W&T Offshore shares are owned by institutional investors. 0.4% of Torm shares are owned by company insiders. Comparatively, 35.9% of W&T Offshore shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Torm | $1.34 billion | 2.83 | $285.30 million | $6.07 | 6.12 |
| W&T Offshore | $501.46 million | 1.15 | -$150.06 million | ($0.73) | -5.24 |
Torm has higher revenue and earnings than W&T Offshore. W&T Offshore is trading at a lower price-to-earnings ratio than Torm, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Torm and W&T Offshore, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Torm | 0 | 1 | 2 | 1 | 3.00 |
| W&T Offshore | 1 | 1 | 1 | 0 | 2.00 |
Torm presently has a consensus price target of $38.00, suggesting a potential upside of 2.26%. W&T Offshore has a consensus price target of $4.25, suggesting a potential upside of 11.11%. Given W&T Offshore’s higher probable upside, analysts plainly believe W&T Offshore is more favorable than Torm.
Profitability
This table compares Torm and W&T Offshore’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Torm | 35.51% | 27.24% | 17.96% |
| W&T Offshore | -19.32% | N/A | -2.59% |
Dividends
Torm pays an annual dividend of $7.01 per share and has a dividend yield of 18.9%. W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 1.0%. Torm pays out 115.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. W&T Offshore pays out -5.5% of its earnings in the form of a dividend.
Summary
Torm beats W&T Offshore on 13 of the 17 factors compared between the two stocks.
About Torm
TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil. The Marine Exhaust segment engages in developing and producing advanced and green marine equipment. TORM plc was founded in 1889 and is based in London, the United Kingdom.
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.
Receive News & Ratings for Torm Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Torm and related companies with MarketBeat.com's FREE daily email newsletter.
