Weatherford International (NASDAQ:WFRD – Get Free Report) and Dawson Geophysical (NASDAQ:DWSN – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Weatherford International and Dawson Geophysical, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Weatherford International | 0 | 3 | 8 | 1 | 2.83 |
| Dawson Geophysical | 0 | 1 | 0 | 0 | 2.00 |
Weatherford International presently has a consensus price target of $87.90, suggesting a potential upside of 13.46%. Given Weatherford International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Weatherford International is more favorable than Dawson Geophysical.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Weatherford International | $5.51 billion | 1.01 | $506.00 million | $5.52 | 14.04 |
| Dawson Geophysical | $74.15 million | 0.82 | -$4.12 million | ($0.12) | -16.25 |
Weatherford International has higher revenue and earnings than Dawson Geophysical. Dawson Geophysical is trading at a lower price-to-earnings ratio than Weatherford International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Weatherford International and Dawson Geophysical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Weatherford International | 8.15% | 28.28% | 7.85% |
| Dawson Geophysical | -5.15% | -19.72% | -8.81% |
Institutional and Insider Ownership
97.2% of Weatherford International shares are owned by institutional investors. Comparatively, 7.9% of Dawson Geophysical shares are owned by institutional investors. 1.6% of Weatherford International shares are owned by company insiders. Comparatively, 0.3% of Dawson Geophysical shares are owned 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.
Risk and Volatility
Weatherford International has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Dawson Geophysical has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500.
Summary
Weatherford International beats Dawson Geophysical on 15 of the 15 factors compared between the two stocks.
About Weatherford International
Weatherford International plc, an energy services company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, and natural gas wells worldwide. The company operates through three segments: Drilling and Evaluation; Well Construction and Completions; and Production and Intervention. 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, cementing, and coiled-tubing intervention; and software, automation and flow measurement solutions. 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; rotating control devices and advanced automated control systems, as well as closed loop drilling, air drilling, managed-pressure drilling, and underbalanced drilling services; open-hole and cased-hole logging services; and intervention and remediation services. Further, it provides tubular handling, management, and connection services; and re-entry, fishing, and well abandonment services, as well as patented bottom hole, tubular-handling equipment, pressure-control equipment, and drill pipe and collars. The company was incorporated in 1972 and is based in Houston, Texas.
About Dawson Geophysical
Dawson Geophysical Company provides onshore seismic data acquisition and processing services in the United States and Canada. The company acquires and processes 2-D, 3-D, and multi-component seismic data for its clients, including oil and gas companies, and independent oil and gas operators, as well as providers of multi-client data libraries and carbon capture sequestration projects. Its seismic crews supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas, as well as potash mining industry. The company was founded in 1952 and is headquartered in Midland, Texas. Dawson Geophysical Company is a subsidiary of Wilks Brothers, LLC.
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