Head to Head Contrast: Weatherford International (WFT) & Its Competitors

Weatherford International (NYSE: WFT) is one of 14 public companies in the “Oil & gas field machinery” industry, but how does it weigh in compared to its peers? We will compare Weatherford International to related businesses based on the strength of its valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Risk and Volatility

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Weatherford International has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500. Comparatively, Weatherford International’s peers have a beta of 0.97, suggesting that their average share price is 3% less volatile than the S&P 500.

Institutional & Insider Ownership

74.4% of shares of all “Oil & gas field machinery” companies are held by institutional investors. 0.4% of Weatherford International shares are held by insiders. Comparatively, 6.8% of shares of all “Oil & gas field machinery” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Weatherford International -49.36% -114.20% -10.01%
Weatherford International Competitors -7.81% -9.68% -0.43%

Analyst Ratings

This is a summary of recent ratings and target prices for Weatherford International and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weatherford International 1 6 15 0 2.64
Weatherford International Competitors 144 878 867 20 2.40

Weatherford International presently has a consensus price target of $4.87, indicating a potential upside of 85.72%. As a group, “Oil & gas field machinery” companies have a potential upside of 4.59%. Given Weatherford International’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Weatherford International is more favorable than its peers.

Earnings & Valuation

This table compares Weatherford International and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Weatherford International $5.70 billion -$2.81 billion -2.26
Weatherford International Competitors $3.65 billion -$224.01 million 17.78

Weatherford International has higher revenue, but lower earnings than its peers. Weatherford International is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Weatherford International peers beat Weatherford International on 8 of the 13 factors compared.

About Weatherford International

Weatherford International Plc provides equipment and services to the oil and natural gas exploration and production industry. It operates its business through the following business groups: Formation Evaluation & Well Construction, Completion & Production and Land Drilling Rigs. The Formation Evaluation & Well Construction business group offers services such as controlled-pressure drilling and testing, drilling, tubular running, drilling tools, integrated drilling, wireline services, re-entry and fishing, cementing, liner systems, integrated laboratory services and surface logging. The Completion & Production business group pertains for service lines, including artificial lift systems, stimulation and chemicals, completion systems and pipeline and specialty services. The Land Drilling Rigs provides onshore contract drilling services and related operations to the oil and gas industries globally. The company was founded in 1941 and is headquartered in Baar, Switzerland.

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