SandRidge Energy, Inc. (SD) vs W&T Offshore, Inc. (WTI)

SandRidge Energy, Inc. and W&T Offshore, Inc. are both Oil & Gas E&P companies. W&T Offshore, Inc. is the larger, with a market value of $589.8M against $525.4M — 1.1× the size. W&T Offshore, Inc. has negative trailing earnings, so its P/E is not meaningful; SandRidge Energy, Inc. trades at 6.2×. SandRidge Energy, Inc. grew revenue faster over the last twelve months: 23.2% against 13.8%. SandRidge Energy, Inc. has the higher net margin (46.1% vs −19.3%) and the lower return on invested capital (10.8% vs 74.1%). Both pay a dividend; SandRidge Energy, Inc. yields more (1.61% vs 0.70%). Across the 20 metrics below, SandRidge Energy, Inc. leads on 12 and W&T Offshore, Inc. on 8.

Valuation

Metric SD WTI Oil & Gas E&P median
P/E 6.15 n/m 10.57
P/S 2.85 0.97 1.80
P/B 0.95 n/m 1.27
Price to free cash flow 14.85 14.45 9.99
EV/EBITDA 3.57 4.91 5.08
EV/Sales 2.39 1.33 2.39
Earnings yield 16.26% (20.00%) 6.06%
Free cash flow yield 6.73% 6.92% 6.17%

Profitability

Metric SD WTI Oil & Gas E&P median
Gross margin 71.89% 43.34% 80.41%
Operating margin 41.11% 0.99% 21.39%
Net margin 46.06% (19.32%) 14.17%
Free cash flow margin 19.18% 6.73% 9.71%
Return on equity 16.22% 72.64% 10.05%
Return on assets 13.06% (10.95%) 5.81%
Return on invested capital 10.81% 74.05% 6.32%

Growth

Metric SD WTI Oil & Gas E&P median
Revenue growth (TTM) 23.23% 13.75% 9.94%
EPS growth (last fiscal year) 12.43% (71.19%) —
Revenue growth, 5-year CAGR 6.34% 7.66% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SD WTI Oil & Gas E&P median
Debt to equity 0.00 (1.79) 0.28
Current ratio 2.62 1.17 0.96
Net debt to EBITDA (1.08) 2.09 0.91

Dividend

Metric SD WTI Oil & Gas E&P median
Dividend yield 1.61% 0.70% 4.93%
Payout ratio 0.00 0.00 0.07

Size

Metric SD WTI Oil & Gas E&P median
Market cap 525.36m 589.76m 923.59m

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