Weatherford International (WFT) and National Oilwell Varco (NOV) Head to Head Survey

Weatherford International (NYSE: WFT) and National Oilwell Varco (NYSE:NOV) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

93.3% of National Oilwell Varco shares are held by institutional investors. 0.4% of Weatherford International shares are held by insiders. Comparatively, 0.8% of National Oilwell Varco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Weatherford International has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500. Comparatively, National Oilwell Varco has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Dividends

National Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Weatherford International does not pay a dividend. National Oilwell Varco pays out -47.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Weatherford International and National Oilwell Varco, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weatherford International 1 5 15 0 2.67
National Oilwell Varco 3 17 4 0 2.04

Weatherford International presently has a consensus target price of $4.73, indicating a potential upside of 43.43%. National Oilwell Varco has a consensus target price of $36.48, indicating a potential downside of 10.27%. Given Weatherford International’s stronger consensus rating and higher probable upside, equities analysts plainly believe Weatherford International is more favorable than National Oilwell Varco.

Earnings and Valuation

This table compares Weatherford International and National Oilwell Varco’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weatherford International $5.70 billion 0.58 -$2.81 billion ($1.16) -2.84
National Oilwell Varco $7.30 billion 2.13 -$237.00 million ($0.42) -96.79

National Oilwell Varco has higher revenue and earnings than Weatherford International. National Oilwell Varco 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 National Oilwell Varco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weatherford International -45.50% -283.53% -9.46%
National Oilwell Varco -2.49% -1.15% -0.79%

Summary

National Oilwell Varco beats Weatherford International on 11 of the 16 factors compared between the two stocks.

About Weatherford International

Weatherford International plc operates as a multinational oilfield service company worldwide. It offers equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells. 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, down hole reservoir monitoring, flow control, and multistage fracturing systems; sand-control technologies, and production and isolation packers for maximum production with minimal cost; 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 to operators for zonal isolation; and pre-job planning and installation services. In addition, it offers directional, and logging and measurement while drilling systems; rotary-steerable systems; high-temperature and high-pressure sensors, drilling reamers, and circulation subs; managed pressure drilling, conventional mud-logging, drilling instrumentation, gas analysis, well site consultancy, open hole and cased-hole logging services; reservoir solutions and software products; and remediation services. Further, the company provides equipment and drilling tools; tubular handling, management, and connection services; equipment rental services; and onshore contract drilling and related services, as well as operates a fleet of land drilling and work over rigs. The company was founded in 1972 and is headquartered in Baar, Switzerland.

About National Oilwell Varco

National Oilwell Varco, Inc. designs, manufactures, and sells systems and components used in oil and gas drilling and production; and provides oilfield services to the upstream oil and gas industry worldwide. It operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. The Wellbore Technologies segment designs, manufactures, rents, and sells various equipment and technologies. This segment also provides solids control and waste management equipment and services, drilling and completion fluids, data acquisition and analytics, water management solutions, managed-pressure-drilling systems, and wellsite logistics solutions; tubular inspection, repair and coating, rope access inspection, and instrumentation services; and power generation equipment, drill and wired pipes, instruments, measuring and monitoring equipment, downhole and fishing tools, hole openers, and drill bits The Completion & Production Solutions segment designs, manufactures, and sells pumping trucks, blenders, sanders, hydration units, injection units, flowline, and manifolds; coiled tubing units, coiled tubing, and wireline units and tools; composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and floating production systems and subsea production technologies. The Rig Technologies segment offers land rigs; offshore drilling equipment packages; and drilling rig components It provides substructures, derricks, and masts; cranes; pipe lifting, racking, rotating, and assembly systems; fluid transfer technologies, such as mud pumps; pressure control equipment, including blowout preventers; power transmission systems comprising drives and generators; and rig instrumentation and control systems. This segment also offers spare parts; and repair and rental services, as well as remote equipment monitoring, technical support, field, and training services. The company was founded in 1862 and is based in Houston, Texas.

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