National-Oilwell Varco (NYSE: NOV) and Oil States International (NYSE:OIS) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.
Risk and Volatility
National-Oilwell Varco has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Oil States International has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.
This table compares National-Oilwell Varco and Oil States International’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National-Oilwell Varco||$7.30 billion||2.21||-$237.00 million||($0.42)||-100.69|
|Oil States International||$670.63 million||2.97||-$84.85 million||($1.06)||-31.37|
Oil States International has lower revenue, but higher earnings than National-Oilwell Varco. National-Oilwell Varco is trading at a lower price-to-earnings ratio than Oil States International, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
93.9% of National-Oilwell Varco shares are owned by institutional investors. 0.8% of National-Oilwell Varco shares are owned by company insiders. Comparatively, 1.9% of Oil States International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for National-Oilwell Varco and Oil States International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oil States International||1||10||3||0||2.14|
National-Oilwell Varco currently has a consensus target price of $37.57, indicating a potential downside of 11.17%. Oil States International has a consensus target price of $30.27, indicating a potential downside of 8.95%. Given Oil States International’s stronger consensus rating and higher possible upside, analysts clearly believe Oil States International is more favorable than National-Oilwell Varco.
This table compares National-Oilwell Varco and Oil States International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oil States International||-9.14%||-3.01%||-2.46%|
National-Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Oil States International does not pay a dividend. National-Oilwell Varco pays out -47.6% of its earnings in the form of a dividend.
National-Oilwell Varco beats Oil States International on 9 of the 16 factors compared between the two stocks.
About National-Oilwell Varco
National Oilwell Varco, Inc. designs, manufactures, and sells systems and components used in oil and gas drilling and production; and provides oilfield services to the upstream oil and gas industry worldwide. It operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. The Wellbore Technologies segment designs, manufactures, rents, and sells various equipment and technologies. This segment also provides solids control and waste management equipment and services, drilling and completion fluids, data acquisition and analytics, water management solutions, managed-pressure-drilling systems, and wellsite logistics solutions; tubular inspection, repair and coating, rope access inspection, and instrumentation services; and power generation equipment, drill and wired pipes, instruments, measuring and monitoring equipment, downhole and fishing tools, hole openers, and drill bits The Completion & Production Solutions segment designs, manufactures, and sells pumping trucks, blenders, sanders, hydration units, injection units, flowline, and manifolds; coiled tubing units, coiled tubing, and wireline units and tools; composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and floating production systems and subsea production technologies. The Rig Technologies segment offers land rigs; offshore drilling equipment packages; and drilling rig components It provides substructures, derricks, and masts; cranes; pipe lifting, racking, rotating, and assembly systems; fluid transfer technologies, such as mud pumps; pressure control equipment, including blowout preventers; power transmission systems comprising drives and generators; and rig instrumentation and control systems. This segment also offers spare parts; and repair and rental services, as well as remote equipment monitoring, technical support, field, and training services. The company was founded in 1862 and is based in Houston, Texas.
About Oil States International
Oil States International, Inc., through its subsidiaries, provides specialty products and services to oil and gas companies worldwide. It operates through two segments, Well Site Services and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. Its services for the onshore and offshore oil and gas industry, including wellhead isolation services; wireline and coiled tubing support services; frac valve and flowback services; well testing, including separators and line heaters; ball launching services; downhole extended-reach technology; pipe recovery systems; thru-tubing milling and fishing services; hydraulic chokes and manifolds; blow out preventers; and gravel pack and sand control operations on well bores. The Offshore/Manufactured Products segment engages in the design, manufacture, fabrication, inspection, assembly, repair, testing, and marketing of OEM equipment for mooring, pipeline, production and drilling risers, and subsea applications along with equipment for offshore vessel and rig construction. Its products and services comprise flexible bearings and connection systems; casing and conductor connections and joints; subsea pipeline products; compact ball valves, manifold system components, and diverter valves; marine winches, mooring systems, cranes, and other heavy-lift rig equipment; production, workover, completion, and drilling riser systems and their related repair services; blowout preventer stack assembly, integration, testing, and repair services; consumable downhole products; and welding, cladding, and other metallurgical technologies. Oil States International, Inc. was founded in 1995 and is headquartered in Houston, Texas.
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