Reviewing Weatherford International (WFRD) and The Competition

Weatherford International (NASDAQ:WFRD) is one of 177 public companies in the “Energy Equipment & Services” industry, but how does it weigh in compared to its competitors? We will compare Weatherford International to related businesses based on the strength of its dividends, institutional ownership, profitability, earnings, risk, valuation and analyst recommendations.

Earnings & Valuation

This table compares Weatherford International and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Weatherford International	$4.69 billion	$431.00 million	15.10
Weatherford International Competitors	$3.24 billion	$29.73 million	12.30

Weatherford International has higher revenue and earnings than its competitors. Weatherford International is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

97.2% of Weatherford International shares are held by institutional investors. Comparatively, 48.9% of shares of all “Energy Equipment & Services” companies are held by institutional investors. 2.1% of Weatherford International shares are held by insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Weatherford International has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Weatherford International’s competitors have a beta of 0.82, meaning that their average stock price is 18% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Weatherford International	8.64%	22.39%	7.82%
Weatherford International Competitors	-10.65%	7.48%	1.47%

Dividends

Weatherford International pays an annual dividend of $1.10 per share and has a dividend yield of 1.3%. Weatherford International pays out 19.6% of its earnings in the form of a dividend. As a group, “Energy Equipment & Services” companies pay a dividend yield of 3.1% and pay out 57.7% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Weatherford International and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weatherford International	0	3	6	0	2.67
Weatherford International Competitors	1670	6829	8615	489	2.45

Weatherford International presently has a consensus price target of $115.57, suggesting a potential upside of 36.42%. As a group, “Energy Equipment & Services” companies have a potential upside of 39.45%. Given Weatherford International’s competitors higher possible upside, analysts plainly believe Weatherford International has less favorable growth aspects than its competitors.

Summary

Weatherford International beats its competitors on 11 of the 15 factors compared.

Weatherford International Company Profile

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.