Weatherford International PLC (NYSE: WFT) and Deep Down (OTCMKTS:DPDW) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
This table compares Weatherford International PLC and Deep Down’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Weatherford International PLC||-53.49%||-65.33%||-10.11%|
Valuation & Earnings
This table compares Weatherford International PLC and Deep Down’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Weatherford International PLC||$5.51 billion||0.62||-$256.00 million||($3.19)||-1.09|
|Deep Down||$26.05 million||0.49||$3.07 million||$0.10||8.50|
Deep Down has higher revenue, but lower earnings than Weatherford International PLC. Weatherford International PLC is trading at a lower price-to-earnings ratio than Deep Down, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for Weatherford International PLC and Deep Down, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weatherford International PLC||1||4||19||0||2.75|
Weatherford International PLC presently has a consensus target price of $6.16, indicating a potential upside of 77.48%. Given Weatherford International PLC’s higher probable upside, analysts clearly believe Weatherford International PLC is more favorable than Deep Down.
Institutional and Insider Ownership
6.0% of Deep Down shares are owned by institutional investors. 1.2% of Weatherford International PLC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
Weatherford International PLC has a beta of 2.45, suggesting that its stock price is 145% more volatile than the S&P 500. Comparatively, Deep Down has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500.
Weatherford International PLC Company Profile
Weatherford International Ltd. (Weatherford) is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people.
Deep Down Company Profile
Deep Down, Inc. is engaged in the oilfield services industry. The Company operates through Deep Down Delaware segment. The Company is a provider of specialized services to the offshore energy industry to support deep water and ultra-deep water exploration, development and production of oil and gas, and other maritime operations. It also produces custom engineered products that assist it in fulfilling service objectives for specific projects on a contractual basis. The Company designs and manufactures deep water and ultra-deep water, surface and offshore equipment solutions, which are used by independent and foreign national oil and gas companies in offshore areas across the world. The Company provides engineering and management services, including the design, installation and retrieval of subsea equipment and systems, connection and termination operations, well-commissioning services, as well as construction support and remotely operated vehicle (ROV) operations support.
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