Head-To-Head Contrast: Liberty Energy (NYSE:LBRT) and Weatherford International (NASDAQ:WFRD)

Weatherford International (NASDAQ:WFRD) and Liberty Energy (NYSE:LBRT) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Dividends

Weatherford International pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Liberty Energy pays an annual dividend of $0.32 per share and has a dividend yield of 3.0%. Weatherford International pays out 15.5% of its earnings in the form of a dividend. Liberty Energy pays out 24.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Liberty Energy has increased its dividend for 2 consecutive years. Liberty Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Weatherford International has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Liberty Energy has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Insider and Institutional Ownership

97.2% of Weatherford International shares are owned by institutional investors. Comparatively, 98.2% of Liberty Energy shares are owned by institutional investors. 2.1% of Weatherford International shares are owned by company insiders. Comparatively, 1.9% of Liberty Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Weatherford International and Liberty Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weatherford International	0	1	9	0	2.90
Liberty Energy	0	8	3	3	2.64

Weatherford International presently has a consensus target price of $99.70, suggesting a potential upside of 73.97%. Liberty Energy has a consensus target price of $15.05, suggesting a potential upside of 41.91%. Given Weatherford International’s stronger consensus rating and higher possible upside, research analysts plainly believe Weatherford International is more favorable than Liberty Energy.

Profitability

This table compares Weatherford International and Liberty Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weatherford International	9.35%	34.87%	9.37%
Liberty Energy	5.29%	6.01%	3.58%

Valuation and Earnings

This table compares Weatherford International and Liberty Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weatherford International	$5.51 billion	0.75	$506.00 million	$6.46	8.87
Liberty Energy	$4.32 billion	0.40	$316.01 million	$1.30	8.16

Weatherford International has higher revenue and earnings than Liberty Energy. Liberty Energy is trading at a lower price-to-earnings ratio than Weatherford International, indicating that it is currently the more affordable of the two stocks.

Summary

Weatherford International beats Liberty Energy on 14 of the 18 factors compared between the two stocks.

About Weatherford International

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 through three segments: Drilling and Evaluation; Well Construction and Completions; and Production and Intervention. 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 software, automation and flow measurement solutions. 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, it provides tubular handling, management, and connection services; and re-entry, fishing, and well abandonment services, as well as patented bottom hole, tubular-handling equipment, pressure-control equipment, and drill pipe and collars. The company was incorporated in 1972 and is based in Houston, Texas.

About Liberty Energy

Liberty Energy Inc. provides hydraulic services and related technologies to onshore oil and natural gas exploration, and production companies in North America. The company offers hydraulic fracturing services, including complementary services, such as wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, related goods comprising sand mine operations, and technologies; and well site fueling and logistics. As of as of December 31, 2023, the company owned and operated a fleet of approximately 40 active hydraulic fracturing; and two sand mines in the Permian Basin. In addition, the company provides services primarily in the Permian Basin, the Williston Basin, the Eagle Ford Shale, the Haynesville Shale, the Appalachian Basin (Marcellus Shale and Utica Shale), the Western Canadian Sedimentary Basin, the Denver-Julesburg Basin (the DJ Basin), and the Anadarko Basin. Liberty Energy Inc. was formerly known as Liberty Oilfield Services Inc. and changed its name to Liberty Energy Inc. in April 2022. The company was founded in 2011 and is headquartered in Denver, Colorado.