Financial Contrast: DistributionNOW (DNOW) versus Cactus (WHD)

DistributionNOW (NYSE: DNOW) and Cactus (NYSE:WHD) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Analyst Ratings

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This is a breakdown of current ratings and target prices for DistributionNOW and Cactus, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DistributionNOW 0 7 4 0 2.36
Cactus 0 0 9 0 3.00



DistributionNOW currently has a consensus price target of $12.60, suggesting a potential upside of 4.65%. Cactus has a consensus price target of $31.20, suggesting a potential upside of 6.89%. Given Cactus’ stronger consensus rating and higher possible upside, analysts clearly believe Cactus is more favorable than DistributionNOW.

Profitability

This table compares DistributionNOW and Cactus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DistributionNOW -1.96% -2.46% -1.68%
Cactus N/A N/A N/A

Earnings and Valuation

This table compares DistributionNOW and Cactus’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DistributionNOW $2.65 billion 0.49 -$52.00 million ($0.27) -44.59
Cactus $341.19 million 6.41 $66.54 million $1,258.36 0.02

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

Summary

Cactus beats DistributionNOW on 9 of the 10 factors compared between the two stocks.

About DistributionNOW

NOW Inc. distributes energy and industrial products in the United States, Canada, and internationally. It offers consumable maintenance, repair, and operating supplies; and pipes, valves, fittings, flanges, gaskets, fasteners, electrical products, instrumentations, artificial lift, pumping solutions, valve actuation and modular process, measurement and control equipment, process equipment, pumps, OEM parts, coatings, mill supplies, and safety supplies, as well as provides application systems, work processes, parts integration, optimization solutions, and after-sales support services. The company also provides supply chain and materials management solutions that include procurement, inventory and warehouse management, logistics, point of issue technology, project management, business process, and performance metrics reporting. It offers its products under the DistributionNOW and Wilson Export brand names. The company serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, and other downstream energy processors; and industrial and manufacturing companies. NOW Inc. was incorporated in 2013 and is headquartered in Houston, Texas.

About Cactus

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.

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