Cactus (NYSE:WHD – Get Free Report) and Seadrill (NYSE:SDRL – Get Free Report) are both mid-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.
Institutional & Insider Ownership
85.1% of Cactus shares are held by institutional investors. Comparatively, 95.7% of Seadrill shares are held by institutional investors. 12.9% of Cactus shares are held by company insiders. Comparatively, 0.5% of Seadrill shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Cactus and Seadrill”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cactus | $1.36 billion | 3.83 | $166.01 million | $1.44 | 45.20 |
| Seadrill | $1.44 billion | 2.28 | -$77.00 million | $0.03 | 1,747.93 |
Cactus has higher earnings, but lower revenue than Seadrill. Cactus is trading at a lower price-to-earnings ratio than Seadrill, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cactus and Seadrill’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cactus | 6.69% | 18.24% | 11.34% |
| Seadrill | 0.07% | 0.64% | 0.46% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Cactus and Seadrill, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cactus | 0 | 3 | 3 | 0 | 2.50 |
| Seadrill | 0 | 3 | 3 | 3 | 3.00 |
Cactus currently has a consensus price target of $73.25, indicating a potential upside of 12.55%. Seadrill has a consensus price target of $59.40, indicating a potential upside of 13.28%. Given Seadrill’s stronger consensus rating and higher probable upside, analysts clearly believe Seadrill is more favorable than Cactus.
Risk & Volatility
Cactus has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Seadrill has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Summary
Cactus beats Seadrill on 8 of the 14 factors compared between the two stocks.
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.
About Seadrill
Seadrill Ltd. engages in the provision of offshore drilling services to the oil and gas industry. It operates through the following segments: Floaters, Jack-up rigs, and Other. The Floaters segment encompasses drilling, completion, and maintenance of offshore exploration and production wells. the Jack-up Rigs segment includes drilling contracts relate to jack-up rigs for operations in harsh and benign environments in shallow water. The Other segment represents management services to third parties and related parties. The company was founded on May 10, 2005 and is headquartered in Hamilton, Bermuda.
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