Reviewing Weatherford International (OTCMKTS:WFTIQ) & NOW (OTCMKTS:DNOW)

Weatherford International (OTCMKTS:WFTIQ) and NOW (NYSE:DNOW) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares Weatherford International and NOW’s 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%
NOW -3.29% 2.11% 1.46%

Earnings & Valuation

This table compares Weatherford International and NOW’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weatherford International $5.74 billion 0.00 -$2.81 billion ($0.59) -0.03
NOW $2.95 billion 0.33 -$97.00 million $0.23 38.39

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Weatherford International and NOW, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weatherford International 0 0 1 0 3.00
NOW 0 2 2 0 2.50

NOW has a consensus target price of $12.56, indicating a potential upside of 42.27%. Given NOW’s higher possible upside, analysts clearly believe NOW is more favorable than Weatherford International.

Summary

NOW beats Weatherford International on 8 of the 11 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 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.

About NOW

NOW Inc. distributes energy and industrial products in the United States, Canada, and internationally. It offers consumable maintenance, repair, and operating supplies; and pipes, valves, fittings, flanges, gaskets, fasteners, electrical products, instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as applied products and applications, such as artificial lift systems, coatings, and other expendable items. The company also provides machine, cutting, power, and hand tools; OEM equipment including pumps, generator sets, air and gas compressors, dryers, blowers and valves; and warehouse and inventory management solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support. In addition, it offers supply chain and materials management solutions that include procurement, inventory and warehouse management, logistics, point of issue technology, project management, business process, and performance metrics reporting. The company offers its products under the DistributionNOW and Wilson Export brand names. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, and other downstream energy processors; and industrial and manufacturing companies. NOW Inc. was incorporated in 2013 and is headquartered in Houston, Texas.

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