Critical Analysis: Weatherford International (NYSE:WFT) vs. Its Competitors

Weatherford International (NYSE: WFT) is one of 14 publicly-traded companies in the “Oil & gas field machinery” industry, but how does it contrast to its rivals? We will compare Weatherford International to related companies based on the strength of its valuation, profitability, risk, analyst recommendations, institutional ownership, earnings and dividends.

Earnings & Valuation

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This table compares Weatherford International and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Weatherford International $5.70 billion -$2.81 billion -2.23
Weatherford International Competitors $3.65 billion -$224.01 million 18.15



Weatherford International has higher revenue, but lower earnings than its rivals. Weatherford International is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Weatherford International has a beta of 2.34, meaning that its stock price is 134% more volatile than the S&P 500. Comparatively, Weatherford International’s rivals have a beta of 0.97, meaning that their average stock price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Weatherford International and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weatherford International 1 5 15 0 2.67
Weatherford International Competitors 146 887 871 20 2.40

Weatherford International currently has a consensus target price of $4.73, suggesting a potential upside of 82.75%. As a group, “Oil & gas field machinery” companies have a potential upside of 2.61%. Given Weatherford International’s stronger consensus rating and higher probable upside, equities analysts plainly believe Weatherford International is more favorable than its rivals.

Institutional & Insider Ownership

73.1% of shares of all “Oil & gas field machinery” companies are held by institutional investors. 0.4% of Weatherford International shares are held by insiders. Comparatively, 7.8% of shares of all “Oil & gas field machinery” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Weatherford International and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weatherford International -49.36% -114.20% -10.01%
Weatherford International Competitors -7.67% -9.66% -0.42%

Summary

Weatherford International rivals beat Weatherford International on 8 of the 13 factors compared.

Weatherford International Company Profile

Weatherford International Plc provides equipment and services to the oil and natural gas exploration and production industry. It operates its business through the following business groups: Formation Evaluation & Well Construction, Completion & Production and Land Drilling Rigs. The Formation Evaluation & Well Construction business group offers services such as controlled-pressure drilling and testing, drilling, tubular running, drilling tools, integrated drilling, wireline services, re-entry and fishing, cementing, liner systems, integrated laboratory services and surface logging. The Completion & Production business group pertains for service lines, including artificial lift systems, stimulation and chemicals, completion systems and pipeline and specialty services. The Land Drilling Rigs provides onshore contract drilling services and related operations to the oil and gas industries globally. The company was founded in 1941 and is headquartered in Baar, Switzerland.

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