Cactus (WHD) versus Weatherford International (WFT) Financial Contrast

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

Analyst Ratings

This is a summary of recent 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 0 0 9 0 3.00
Weatherford International 1 5 15 0 2.67

Cactus presently has a consensus price target of $32.20, indicating a potential downside of 8.73%. Weatherford International has a consensus price target of $4.73, indicating a potential upside of 32.22%. Given Weatherford International’s higher probable upside, analysts clearly believe Weatherford International is more favorable than Cactus.

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 $341.19 million 7.74 $66.54 million $1,258.36 0.03
Weatherford International $5.70 billion 0.63 -$2.81 billion ($1.16) -3.09

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 N/A N/A N/A
Weatherford International -45.50% -283.53% -9.46%

Institutional & Insider Ownership

4.7% of Cactus shares are owned by institutional investors. 96.1% 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 will outperform the market over the long term.

Summary

Cactus beats Weatherford International on 10 of the 13 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 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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