Cactus (NYSE: WHD) and TechnipFMC (NYSE:FTI) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
This table compares Cactus and TechnipFMC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
TechnipFMC pays an annual dividend of $0.52 per share and has a dividend yield of 1.6%. Cactus does not pay a dividend. TechnipFMC pays out 40.3% of its earnings in the form of a dividend.
Insider and Institutional Ownership
66.7% of TechnipFMC shares are held by institutional investors. 0.9% of TechnipFMC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for Cactus and TechnipFMC, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cactus presently has a consensus price target of $31.20, indicating a potential upside of 14.24%. TechnipFMC has a consensus price target of $33.79, indicating a potential upside of 3.76%. Given Cactus’ stronger consensus rating and higher probable upside, equities analysts clearly believe Cactus is more favorable than TechnipFMC.
Valuation and Earnings
This table compares Cactus and TechnipFMC’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cactus||$341.19 million||5.99||$66.54 million||$1,258.36||0.02|
|TechnipFMC||$15.06 billion||1.01||$113.30 million||$1.29||25.25|
TechnipFMC has higher revenue and earnings than Cactus. Cactus is trading at a lower price-to-earnings ratio than TechnipFMC, indicating that it is currently the more affordable of the two stocks.
TechnipFMC beats Cactus on 10 of the 15 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.
TechnipFMC Company Profile
TechnipFMC plc provides technologies, production systems, services, and solutions for the oil and gas industry worldwide. It operates in three segments: Subsea, Onshore/Offshore, and Surface Technologies. The Subsea segment manufactures and designs products and systems; performs engineering, procurement, and project management; and provides services used by oil and gas companies involved in deepwater exploration and production of crude oil and natural gas. The Onshore/Offshore segment designs and builds onshore facilities related to the production, treatment, and transportation of oil and gas; and designs, manufactures, and installs fixed and floating platforms for the production and processing of oil and gas reserves for companies in the oil and gas industry. The Surface Technologies segment designs and manufactures systems, as well as provides services used by oil and gas companies involved in land and offshore exploration and production of crude oil and natural gas. This segment also designs, manufactures, and supplies technologically advanced high pressure valves and fittings for oilfield service companies; and provides flowback and well testing services for exploration companies in the oil and gas industry. The company was formerly known as Technip SA and changed its name to TechnipFMC plc in January 2017. TechnipFMC plc was founded in 1958 and is headquartered in London, the United Kingdom.
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