Weatherford International (WFRD) versus Its Competitors Head-To-Head Contrast

Weatherford International (NASDAQ:WFRD) is one of 177 publicly-traded companies in the “Energy Equipment & Services” industry, but how does it compare to its competitors? We will compare Weatherford International to related businesses based on the strength of its earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Insider and Institutional Ownership

97.2% of Weatherford International shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Energy Equipment & Services” companies are owned by institutional investors. 2.1% of Weatherford International shares are owned by insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Weatherford International	8.64%	22.39%	7.82%
Weatherford International Competitors	-10.63%	7.43%	1.47%

Dividends

Weatherford International pays an annual dividend of $1.10 per share and has a dividend yield of 1.3%. Weatherford International pays out 19.6% of its earnings in the form of a dividend. As a group, “Energy Equipment & Services” companies pay a dividend yield of 2.9% and pay out 54.5% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Weatherford International and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Weatherford International	$4.92 billion	$431.00 million	15.63
Weatherford International Competitors	$3.23 billion	$29.73 million	18.58

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

Analyst Recommendations

This is a summary of recent ratings for Weatherford International and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weatherford International	0	3	6	0	2.67
Weatherford International Competitors	1667	6817	8605	486	2.45

Weatherford International currently has a consensus target price of $115.57, indicating a potential upside of 31.78%. As a group, “Energy Equipment & Services” companies have a potential upside of 29.57%. Given Weatherford International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Weatherford International is more favorable than its competitors.

Volatility and Risk

Weatherford International has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Weatherford International’s competitors have a beta of 0.83, meaning that their average stock price is 17% less volatile than the S&P 500.

Summary

Weatherford International beats its competitors on 10 of the 15 factors compared.

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.