Cactus (WHD) & Newpark Resources (NR) Head to Head Review

Cactus (NYSE: WHD) and Newpark Resources (NYSE:NR) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

36.3% of Cactus shares are held by institutional investors. Comparatively, 99.4% of Newpark Resources shares are held by institutional investors. 96.1% of Cactus shares are held by insiders. Comparatively, 4.8% of Newpark Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Cactus and Newpark Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cactus $341.19 million 7.07 $66.54 million $1,258.36 0.03
Newpark Resources $747.76 million 1.24 -$6.14 million $0.10 104.00

Cactus has higher earnings, but lower revenue than Newpark Resources. Cactus is trading at a lower price-to-earnings ratio than Newpark Resources, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cactus and Newpark Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cactus 0 1 9 0 2.90
Newpark Resources 0 1 3 0 2.75

Cactus currently has a consensus target price of $33.50, indicating a potential upside of 4.04%. Newpark Resources has a consensus target price of $10.00, indicating a potential downside of 3.85%. Given Cactus’ stronger consensus rating and higher possible upside, equities analysts plainly believe Cactus is more favorable than Newpark Resources.

Profitability

This table compares Cactus and Newpark Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cactus N/A N/A N/A
Newpark Resources 0.25% 3.10% 1.84%

Summary

Cactus beats Newpark Resources on 7 of the 13 factors compared between the two stocks.

About Cactus

Cactus, Inc. designs, manufactures, sells, and rents a range of wellheads and pressure control equipment. The company's principal products include Cactus SafeDrill wellhead systems, frac stacks, zipper manifolds, and production trees. It also provides field services, such as 24-hour service crews to assist with the installation, maintenance, and safe handling of the wellhead and pressure control equipment, as well as repair services for equipment that it sells or rents. The company sells or rents its products for onshore unconventional oil and gas wells that are utilized during the drilling, completion, and production phases of its customers' wells. It operates 14 service centers in the United States, as well as a service center in Eastern Australia. The company was founded in 2011 and is headquartered in Houston, Texas.

About Newpark Resources

Newpark Resources, Inc. provides products, rentals, and services primarily to the oil and gas exploration and production industry. It operates through two segments, Fluids Systems, and Mats and Integrated Services. The Fluids Systems segment provides drilling fluids products and technical services to customers in the North America, Europe, the Middle East and Africa, Latin America, and the Asia Pacific regions. The Mats and Integrated Services segment offers composite mat rentals, site construction, and related site services to customers in various markets, including oil and gas exploration and production, electrical transmission and distribution, pipeline, solar, petrochemical, and construction across the United States, Canada, Europe, and internationally. The company was founded in 1932 and is based in The Woodlands, Texas.

Receive News & Ratings for Cactus Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cactus and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply