Critical Contrast: Weatherford International (NYSE:WFT) and Weatherford International (NYSE:WFTIF)

Weatherford International (NYSE:WFT) and Weatherford International (OTCMKTS:WFTIF) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

85.5% of Weatherford International shares are held by institutional investors. Comparatively, 85.7% of Weatherford International shares are held by institutional investors. 0.4% of Weatherford International shares are held by insiders. Comparatively, 0.4% of Weatherford International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Weatherford International -48.94% N/A -6.96%
Weatherford International -53.77% N/A -7.53%

Earnings and Valuation

This table compares Weatherford International and Weatherford International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weatherford International $5.74 billion 0.01 -$2.81 billion ($0.59) -0.08
Weatherford International $5.74 billion 0.01 -$2.81 billion ($0.59) -0.08

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

Risk and Volatility

Weatherford International has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Weatherford International has a beta of 2.88, indicating that its share price is 188% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Weatherford International and Weatherford International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weatherford International 5 10 2 0 1.82
Weatherford International 1 0 0 0 1.00

Weatherford International presently has a consensus target price of $1.63, indicating a potential upside of 3,266.45%. Given Weatherford International’s stronger consensus rating and higher possible upside, analysts clearly believe Weatherford International is more favorable than Weatherford International.

Summary

Weatherford International beats Weatherford International on 6 of the 9 factors compared between the two stocks.

About Weatherford International

Weatherford International plc, an oilfield service company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. The company operates in two segments, Western Hemisphere and Eastern Hemisphere. 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 and fluid systems, cementing, and coiled-tubing intervention; and drill stem test tools, and surface well testing and multiphase flow measurement services. 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; managed pressure drilling, conventional mud-logging, drilling instrumentation, gas analysis, wellsite consultancy, and open hole and cased-hole logging services; reservoir solutions and software products; and intervention and remediation services. Further, the company provides equipment and drilling tools; tubular handling, management, and connection services; equipment rental services; and onshore contract drilling and related services through a fleet of land drilling and workover rigs. Weatherford International plc was incorporated in 1972 and is headquartered in Baar, Switzerland.

About Weatherford International

Weatherford International Plc provides equipment and services to the oil and natural gas exploration and production industry. It operates through two segments: Western Hemisphere and Eastern Hemispher. The company products and services are Drilling and Evaluation, Production, Completions, and Well Construction. Weatherford International was founded in 1941 and is headquartered in Baar, Switzerland.

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