Contrasting Cactus (WHD) & The Competition

Cactus (NYSE:WHD) is one of 177 public companies in the “Energy Equipment & Services” industry, but how does it weigh in compared to its rivals? We will compare Cactus to similar businesses based on the strength of its risk, dividends, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Volatility & Risk

Cactus has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Cactus’ rivals have a beta of 0.82, indicating that their average share price is 18% less volatile than the S&P 500.

Profitability

This table compares Cactus and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cactus	6.69%	17.93%	11.01%
Cactus Competitors	-10.65%	7.48%	1.47%

Dividends

Cactus pays an annual dividend of $0.60 per share and has a dividend yield of 1.0%. Cactus pays out 41.7% of its earnings in the form of a dividend. As a group, “Energy Equipment & Services” companies pay a dividend yield of 3.1% and pay out 57.7% of their earnings in the form of a dividend. Cactus has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for Cactus and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cactus	0	3	3	0	2.50
Cactus Competitors	1670	6829	8615	489	2.45

Cactus currently has a consensus price target of $74.75, indicating a potential upside of 28.17%. As a group, “Energy Equipment & Services” companies have a potential upside of 40.00%. Given Cactus’ rivals higher probable upside, analysts clearly believe Cactus has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

85.1% of Cactus shares are held by institutional investors. Comparatively, 48.9% of shares of all “Energy Equipment & Services” companies are held by institutional investors. 12.9% of Cactus shares are held by company insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Cactus and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cactus	$1.08 billion	$166.01 million	40.50
Cactus Competitors	$3.24 billion	$29.73 million	12.26

Cactus’ rivals have higher revenue, but lower earnings than Cactus. Cactus is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Cactus beats its rivals on 11 of the 15 factors compared.

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.