Head to Head Analysis: Weatherford International (WFRD) versus The Competition

Weatherford International (NASDAQ:WFRDGet Rating) is one of 23 public companies in the “Oil & gas field machinery” industry, but how does it contrast to its peers? We will compare Weatherford International to similar businesses based on the strength of its earnings, dividends, profitability, risk, analyst recommendations, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Weatherford International -11.04% -36.94% -4.35%
Weatherford International Competitors -5.76% -9.92% -1.92%

Valuation and Earnings

This table compares Weatherford International and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Weatherford International $3.65 billion -$450.00 million -5.26
Weatherford International Competitors $3.96 billion -$425.06 million 18.52

Weatherford International’s peers have higher revenue and earnings than Weatherford International. Weatherford International is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

93.1% of Weatherford International shares are owned by institutional investors. Comparatively, 60.0% of shares of all “Oil & gas field machinery” companies are owned by institutional investors. 11.9% of shares of all “Oil & gas field machinery” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Weatherford International and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weatherford International 0 0 2 0 3.00
Weatherford International Competitors 239 1422 1393 39 2.40

Weatherford International currently has a consensus target price of $47.00, indicating a potential upside of 51.32%. As a group, “Oil & gas field machinery” companies have a potential upside of 10.87%. Given Weatherford International’s stronger consensus rating and higher possible upside, research analysts plainly believe Weatherford International is more favorable than its peers.

Summary

Weatherford International peers beat Weatherford International on 7 of the 11 factors compared.

Weatherford International Company Profile (Get Rating)

Weatherford International plc, an energy services company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, and natural gas wells worldwide. 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, cementing, and coiled-tubing intervention; and drill stem test tools, surface well testing, and multiphase flow measurement services. The company also provides safety, downhole reservoir monitoring, flow control, and multistage fracturing systems, as well as sand-control technologies, and production and isolation packers; 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 for zonal isolation; and pre-job planning and installation services. In addition, it offers directional drilling services, and logging and measurement services while drilling; services related to rotary-steerable systems, high-temperature and high-pressure sensors, drilling reamers, and circulation subs; rotating control devices and advanced automated control systems, as well as closed-loop drilling, air drilling, managed-pressure drilling, and underbalanced drilling services; open hole and cased-hole logging services; and intervention and remediation services. Further, the company provides tubular handling, management, and connection services; and re-entry, fishing, wellbore cleaning, and well abandonment services, as well as patented bottom hole, tubularhandling equipment, pressure-control equipment, and drill pipe and collars. The company was incorporated in 1972 and is based in Houston, Texas.

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