Cactus (NYSE: WHD) and Weatherford International (NYSE:WFT) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Institutional and Insider Ownership
4.7% of Cactus shares are held by institutional investors. 96.1% of Cactus shares are held by company insiders. Comparatively, 0.4% of Weatherford International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Cactus and Weatherford International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cactus||$341.19 million||7.88||$66.54 million||$1,258.36||0.03|
|Weatherford International||$5.70 billion||0.62||-$2.81 billion||($1.16)||-3.08|
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.
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|
This is a summary of current ratings and price targets for Cactus and Weatherford International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cactus presently has a consensus target price of $32.20, suggesting a potential downside of 10.28%. Weatherford International has a consensus target price of $4.73, suggesting a potential upside of 32.59%. Given Weatherford International’s higher probable upside, analysts clearly believe Weatherford International is more favorable than Cactus.
Cactus beats Weatherford International on 9 of the 12 factors compared between the two stocks.
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.
About Weatherford International
Weatherford International plc operates as a multinational oilfield service company worldwide. It offers equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells. The company operates in two segments, Western Hemisphere and Eastern Hemisphere. It offers artificial-lift systems, including reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid lift systems, as well as related automation and control systems; pressure pumping and reservoir stimulation services, such as acidizing, fracturing and fluid systems, cementing, and coiled-tubing intervention; and drill stem test tools, and surface well testing and multiphase flow measurement services. The company also provides safety, down hole reservoir monitoring, flow control, and multistage fracturing systems; sand-control technologies, and production and isolation packers for maximum production with minimal cost; liner hangers to suspend a casing string in high-temperature and high-pressure wells; cementing products, including plugs, float and stage equipment, and torque-and-drag reduction technology to operators for zonal isolation; and pre-job planning and installation services. In addition, it offers directional, and logging and measurement while drilling systems; rotary-steerable systems; high-temperature and high-pressure sensors, drilling reamers, and circulation subs; managed pressure drilling, conventional mud-logging, drilling instrumentation, gas analysis, well site consultancy, open hole and cased-hole logging services; reservoir solutions and software products; and remediation services. Further, the company provides equipment and drilling tools; tubular handling, management, and connection services; equipment rental services; and onshore contract drilling and related services, as well as operates a fleet of land drilling and work over rigs. The company was founded in 1972 and is headquartered in Baar, Switzerland.
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