Head to Head Analysis: Cactus (NYSE:WHD) & Pgs Asa (OTC:PGEJF)

Pgs Asa (OTC:PGEJF) and Cactus (NYSE:WHD) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Institutional & Insider Ownership

38.9% of Pgs Asa shares are held by institutional investors. Comparatively, 85.1% of Cactus shares are held by institutional investors. 17.7% of Cactus shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Pgs Asa pays an annual dividend of C$0.29 per share and has a dividend yield of 32.1%. Cactus pays an annual dividend of $0.52 per share and has a dividend yield of 0.9%. Pgs Asa pays out 85.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cactus pays out 20.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Pgs Asa and Cactus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pgs Asa	N/A	N/A	N/A	C$0.34	2.67
Cactus	$1.13 billion	4.11	$169.17 million	$2.51	23.22

Cactus has higher revenue and earnings than Pgs Asa. Pgs Asa 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 Pgs Asa and Cactus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pgs Asa	N/A	N/A	N/A
Cactus	16.88%	21.22%	14.84%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Pgs Asa and Cactus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pgs Asa	0	0	0	0	N/A
Cactus	1	3	3	0	2.29

Cactus has a consensus price target of $56.40, suggesting a potential downside of 3.22%. Given Cactus’ higher probable upside, analysts clearly believe Cactus is more favorable than Pgs Asa.

Summary

Cactus beats Pgs Asa on 11 of the 12 factors compared between the two stocks.

About Pgs Asa

PGS ASA, together with its subsidiaries, operates as a marine geophysical company primarily in Norway. The company provides a range of seismic and reservoir services, including data acquisition, imaging, interpretation, and field evaluation to oil and gas companies, as well as carbon storage and offshore wind markets. It also operates in the Asia Pacific, Canada, Egypt, the Americas, Angola, the United Kingdom, Greece, Cyprus, Ukraine, Brazil, South Africa, other African countries, the Middle East, and internationally. The company was formerly known as Petroleum Geo-Services ASA and changed its name to PGS ASA in May 2019. PGS ASA was founded in 1991 and is headquartered in Oslo, Norway.

About Cactus

Cactus, Inc., together with its subsidiaries, designs, manufactures, sells, and leases pressure control and spoolable pipes in the United States, Australia, Canada, the Middle East, and internationally. It operates through two segments, Pressure Control and Spoolable Technologies. The Pressure Control segment designs, manufactures, sells, and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand name through service centers. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells. This segment also provides field services to install, maintain, and handle the equipment. The Spoolable Technologies segment designs, manufactures, and sells spoolable pipes and associated end fittings under the FlexSteel brand name. Its products are primarily used to transport oil, gas, and other liquids. This segment also provides field services and rental items through service centers and pipe yards, as well as offers equipment and services internationally. In addition, the company offers repair and refurbishment services. Cactus, Inc. was founded in 2011 and is headquartered in Houston, Texas.