Critical Review: Weatherford International (WFTIQ) and Its Peers

Weatherford International (OTCMKTS: WFTIQ) is one of 17 public companies in the “Oil & gas field machinery” industry, but how does it compare to its rivals? We will compare Weatherford International to similar companies based on the strength of its institutional ownership, dividends, risk, profitability, analyst recommendations, earnings and valuation.

Institutional and Insider Ownership

1.0% of Weatherford International shares are held by institutional investors. Comparatively, 67.2% of shares of all “Oil & gas field machinery” companies are held by institutional investors. 0.4% of Weatherford International shares are held by company insiders. Comparatively, 12.9% of shares of all “Oil & gas field machinery” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Weatherford International and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weatherford International 0 0 0 0 N/A
Weatherford International Competitors 243 1169 1111 28 2.36

As a group, “Oil & gas field machinery” companies have a potential upside of 19.20%. Given Weatherford International’s rivals higher probable upside, analysts clearly believe Weatherford International has less favorable growth aspects than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
Weatherford International -68.93% N/A -13.49%
Weatherford International Competitors -14.94% 4.04% 2.55%

Risk & Volatility

Weatherford International has a beta of 2.83, suggesting that its stock price is 183% more volatile than the S&P 500. Comparatively, Weatherford International’s rivals have a beta of 1.43, suggesting that their average stock price is 43% more volatile than the S&P 500.

Valuation and Earnings

This table compares Weatherford International and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Weatherford International $5.74 billion -$2.81 billion -0.03
Weatherford International Competitors $5.37 billion -$605.96 million -21.06

Weatherford International has higher revenue, but lower earnings than its rivals. Weatherford International 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

Weatherford International rivals beat Weatherford International on 7 of the 10 factors compared.

Weatherford International Company Profile

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 related services through a fleet of land drilling and workover rigs. Weatherford International plc was founded in 1972 and is based in Huston, Texas. On July 1, 2019, Weatherford International, plc, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

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