Analyzing Weatherford International (WFRD) and Its Competitors

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

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 -5.24% -8.17% -1.38%

Institutional & Insider 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. 11.8% of shares of all “Oil & gas field machinery” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Weatherford International and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Weatherford International $3.65 billion -$450.00 million -5.68
Weatherford International Competitors $3.96 billion -$425.06 million 19.91

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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weatherford International 0 0 2 0 3.00
Weatherford International Competitors 239 1424 1395 39 2.40

Weatherford International currently has a consensus price target of $47.00, indicating a potential upside of 40.13%. As a group, “Oil & gas field machinery” companies have a potential upside of 3.65%. Given Weatherford International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Weatherford International is more favorable than its peers.

Summary

Weatherford International peers beat Weatherford International on 8 of the 12 factors compared.

About Weatherford International (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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