Weatherford International (NASDAQ:WFRD – Get Free Report) and Seadrill (NYSE:SDRL – Get Free Report) are both mid-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.
Volatility and Risk
Weatherford International has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Seadrill has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for Weatherford International and Seadrill, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Weatherford International | 1 | 2 | 7 | 0 | 2.60 |
| Seadrill | 1 | 2 | 3 | 3 | 2.89 |
Profitability
This table compares Weatherford International and Seadrill’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Weatherford International | 7.66% | 21.50% | 7.09% |
| Seadrill | 0.07% | 0.64% | 0.46% |
Earnings and Valuation
This table compares Weatherford International and Seadrill”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Weatherford International | $4.92 billion | 1.29 | $431.00 million | $5.07 | 17.52 |
| Seadrill | $1.44 billion | 2.09 | -$77.00 million | $0.03 | 1,603.33 |
Weatherford International has higher revenue and earnings than Seadrill. Weatherford International is trading at a lower price-to-earnings ratio than Seadrill, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
97.2% of Weatherford International shares are owned by institutional investors. Comparatively, 95.7% of Seadrill shares are owned by institutional investors. 2.1% of Weatherford International shares are owned by company insiders. Comparatively, 0.5% of Seadrill shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Weatherford International beats Seadrill on 10 of the 15 factors compared between the two stocks.
About Weatherford International
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.
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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