Critical Analysis: Weatherford International (OTCMKTS:WFTIQ) versus Oil States International (OTCMKTS:OIS)

Weatherford International (OTCMKTS:WFTIQ) and Oil States International (NYSE:OIS) 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 earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Weatherford International and Oil States International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weatherford International 69.70% -167.84% 68.38%
Oil States International -22.78% -2.75% -1.95%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Weatherford International and Oil States International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weatherford International 0 0 1 0 3.00
Oil States International 1 7 2 0 2.10

Oil States International has a consensus price target of $16.44, indicating a potential upside of 590.94%. Given Oil States International’s higher probable upside, analysts plainly believe Oil States International is more favorable than Weatherford International.

Earnings and Valuation

This table compares Weatherford International and Oil States International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weatherford International $5.22 billion 0.00 $3.64 billion ($0.59) -0.03
Oil States International $1.02 billion 0.14 -$231.81 million ($0.62) -3.84

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

Summary

Weatherford International beats Oil States International on 7 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 Oil States International

Oil States International, Inc., through its subsidiaries, provides oilfield products and services for the drilling, completion, subsea, production, and infrastructure sectors of the oil and gas industry worldwide. The company operates in three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. It also provides services, including wireline support, frac stacks, isolations tools, extended reach tools, ball launchers, well testing and flowback operations, thru tubing activity, and sand control; and land drilling services. The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies. The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels; and short-cycle and other products. Its products include flexible bearings, advanced connector systems, high-pressure riser systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products. This segment also provides short-cycle products, such as valves, elastomers, and other specialty products that are used in the land-based drilling and completion markets; and other products for use in industrial, military, and other applications. In addition, it offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services. The company was founded in 1995 and is headquartered in Houston, Texas.

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