Analyzing Cactus (WHD) and Its Peers

Cactus (NYSE: WHD) is one of 14 publicly-traded companies in the “Oil & gas field machinery” industry, but how does it weigh in compared to its competitors? We will compare Cactus to similar businesses based on the strength of its risk, earnings, dividends, analyst recommendations, valuation, profitability and institutional ownership.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Cactus $341.19 million $66.54 million 0.02
Cactus Competitors $3.65 billion -$223.95 million 16.92

Cactus’ competitors have higher revenue, but lower earnings than Cactus. Cactus is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Cactus N/A N/A N/A
Cactus Competitors -7.81% -9.68% -0.43%

Insider and Institutional Ownership

74.4% of shares of all “Oil & gas field machinery” companies are owned by institutional investors. 7.1% of shares of all “Oil & gas field machinery” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cactus and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cactus 0 0 9 0 3.00
Cactus Competitors 149 872 859 20 2.39

Cactus presently has a consensus price target of $31.20, suggesting a potential upside of 19.77%. As a group, “Oil & gas field machinery” companies have a potential upside of 14.00%. Given Cactus’ stronger consensus rating and higher possible upside, equities analysts clearly believe Cactus is more favorable than its competitors.

Summary

Cactus beats its competitors on 7 of the 12 factors compared.

Cactus Company Profile

Cactus, Inc. is focused on designing, manufacturing, selling and renting a wellheads and pressure control equipment. Its principal products, include Cactus SafeDrill wellhead systems, frac stacks, zipper manifolds and production trees. The Cactus SafeDrill wellhead systems employ technology traditionally associated with deepwater applications, which allows technicians to land and secure casing strings safely from the rig floor without the need to descend into the well cellar. The Company’s products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion (including fracturing) and production Phases of its customers’ wells.

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