Critical Review: Weatherford International (NASDAQ:WFRD) & NCS Multistage (NASDAQ:NCSM)

NCS Multistage (NASDAQ:NCSM) and Weatherford International (NASDAQ:WFRD) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Insider and Institutional Ownership

70.9% of NCS Multistage shares are owned by institutional investors. Comparatively, 97.2% of Weatherford International shares are owned by institutional investors. 10.0% of NCS Multistage shares are owned by company insiders. Comparatively, 2.1% 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 company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NCS Multistage	6.89%	12.10%	9.40%
Weatherford International	8.15%	28.28%	7.85%

Risk and Volatility

NCS Multistage has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Weatherford International has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NCS Multistage	$162.56 million	0.63	$6.59 million	$4.54	8.86
Weatherford International	$5.51 billion	1.02	$506.00 million	$5.52	14.16

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NCS Multistage and Weatherford International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NCS Multistage	0	2	0	1	2.67
Weatherford International	0	3	8	1	2.83

Weatherford International has a consensus target price of $94.70, indicating a potential upside of 21.15%. Given Weatherford International’s stronger consensus rating and higher probable upside, analysts clearly believe Weatherford International is more favorable than NCS Multistage.

Summary

Weatherford International beats NCS Multistage on 12 of the 14 factors compared between the two stocks.

About NCS Multistage

NCS Multistage Holdings, Inc. provides engineered products and support services for oil and natural gas well completions and construction, and field development strategies in the United States, Canada, and internationally. It offers fracturing systems, which include casing-installed sliding sleeves, downhole frac isolation assemblies, and sand jet perforating products; enhanced recovery products, such as sliding sleeve, as well as Terrus system, an injection control device; repeat precision products comprising composite frac plugs and bridge plugs, single-use disposable setting tools, express systems, and related products; chemical and radioactive tracer diagnostics services; and well construction products, including AirLock casing buoyancy system, Vecturon and Vectraset liner hanger systems, and Toe initiation sleeves. It offers its products and services primarily to exploration and production companies for use in onshore wells through technically-trained sales force, and operating partners or sales representatives. The company was formerly known as Pioneer Super Holdings, Inc. and changed its name to NCS Multistage Holdings, Inc. in December 2016. NCS Multistage Holdings, Inc. was founded in 2006 and is headquartered in Houston, Texas.

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.