Comparing Cactus (NYSE:WHD) and Weatherford International (NYSE:WFTIF)

Cactus (NYSE:WHD) and Weatherford International (OTCMKTS:WFTIF) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Volatility and Risk

Cactus has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Weatherford International has a beta of 2.88, suggesting that its share price is 188% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cactus and Weatherford International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cactus $544.14 million 4.23 $65.33 million $1.78 17.22
Weatherford International $5.74 billion 0.01 -$2.81 billion ($0.59) -0.09

Cactus has higher earnings, but lower revenue than Weatherford International. Weatherford International is trading at a lower price-to-earnings ratio than Cactus, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cactus and Weatherford International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cactus 12.71% 35.71% 21.26%
Weatherford International -53.77% N/A -7.53%

Analyst Recommendations

This is a summary of recent ratings and target prices for Cactus and Weatherford International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cactus 0 0 10 0 3.00
Weatherford International 1 0 0 0 1.00

Cactus presently has a consensus target price of $42.40, suggesting a potential upside of 38.34%. Given Cactus’ stronger consensus rating and higher probable upside, analysts plainly believe Cactus is more favorable than Weatherford International.

Institutional and Insider Ownership

61.8% of Cactus shares are owned by institutional investors. Comparatively, 85.7% of Weatherford International shares are owned by institutional investors. 24.7% of Cactus shares are owned by company insiders. Comparatively, 0.4% of Weatherford International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Cactus beats Weatherford International on 11 of the 14 factors compared between the two stocks.

Cactus Company Profile

Cactus, Inc. designs, manufactures, sells, and rents a range of wellheads and pressure control equipment. The company's principal products include Cactus SafeDrill wellhead systems, frac stacks, zipper manifolds, and production trees. It also provides field services, such as 24-hour service crews to assist with the installation, maintenance, and safe handling of the wellhead and pressure control equipment, as well as repair services for equipment that it sells or rents. The company sells or rents its products for onshore unconventional oil and gas wells that are utilized during the drilling, completion, and production phases of its customers' wells. It operates 14 service centers in the United States, as well as a service center in Eastern Australia. The company was founded in 2011 and is headquartered in Houston, Texas.

Weatherford International Company Profile

Weatherford International Plc provides equipment and services to the oil and natural gas exploration and production industry. It operates through two segments: Western Hemisphere and Eastern Hemispher. The company products and services are Drilling and Evaluation, Production, Completions, and Well Construction. Weatherford International was founded in 1941 and is headquartered in Baar, Switzerland.

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