Head-To-Head Review: Cactus (NYSE:WHD) and PostRock Energy (OTCMKTS:PSTRQ)

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

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%

Insider and Institutional Ownership

85.1% of Cactus shares are held by institutional investors. 79.2% of PostRock Energy shares are held by insiders. Comparatively, 16.8% of Cactus 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.

Analyst Recommendations

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

	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 target price of $52.33, indicating a potential upside of 15.60%. Given Cactus’ stronger consensus rating and higher probable upside, analysts plainly believe Cactus is more favorable than PostRock Energy.

Earnings & Valuation

This table compares PostRock Energy and Cactus”s revenue, earnings per share 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	3.20	$185.41 million	$2.81	16.11

Cactus has higher revenue and earnings than PostRock Energy.

Volatility & Risk

PostRock Energy has a beta of -2.41, suggesting that its share price is 341% less volatile than the S&P 500. Comparatively, Cactus has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

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.