Reviewing PostRock Energy (OTCMKTS:PSTRQ) and Cactus (NYSE:WHD)

PostRock Energy (OTCMKTS:PSTRQ) and Cactus (NYSE:WHD) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for PostRock Energy and Cactus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PostRock Energy	0	0	0	0	0.00
Cactus	1	3	2	0	2.17

Cactus has a consensus price target of $52.33, suggesting a potential upside of 17.79%. Given Cactus’ stronger consensus rating and higher probable upside, analysts clearly believe Cactus is more favorable than PostRock Energy.

Valuation & Earnings

This table compares PostRock Energy and Cactus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PostRock Energy	N/A	N/A	N/A	N/A	N/A
Cactus	$1.13 billion	3.14	$185.41 million	$2.81	15.81

Cactus has higher revenue and earnings than PostRock Energy.

Institutional & Insider Ownership

85.1% of Cactus shares are held by institutional investors. 79.2% of PostRock Energy shares are held by company insiders. Comparatively, 13.8% of Cactus shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

PostRock Energy has a beta of -2.27, indicating that its share price is 327% less volatile than the S&P 500. Comparatively, Cactus has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.

Profitability

This table compares PostRock Energy and Cactus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PostRock Energy	N/A	N/A	N/A
Cactus	16.78%	18.99%	13.76%

Summary

Cactus beats PostRock Energy on 9 of the 10 factors compared between the two stocks.

About PostRock Energy

PostRock Energy Corp. engages in the acquisition, exploration, development, production, and gathering of crude oil and natural gas. It focuses on the Cherokee Basin project in southeastern Kansas, northeastern Oklahoma, and central Oklahoma. The firm also owns and operates minor oil and gas producing properties in the Appalachian Basin. The company was founded in July 2009 and is headquartered in Oklahoma City, OK.

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.