Cactus (NYSE:WHD – Get Free Report) is one of 177 publicly-traded companies in the “Energy Equipment & Services” industry, but how does it compare to its peers? We will compare Cactus to similar companies based on the strength of its valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Profitability
This table compares Cactus and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cactus | 6.69% | 17.93% | 11.01% |
| Cactus Competitors | -10.63% | 7.43% | 1.47% |
Institutional & Insider Ownership
85.1% of Cactus shares are held by institutional investors. Comparatively, 49.0% of shares of all “Energy Equipment & Services” companies are held by institutional investors. 12.9% of Cactus shares are held by company insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Cactus has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Cactus’ peers have a beta of 0.83, suggesting that their average stock price is 17% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Cactus and its peers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cactus | 0 | 3 | 3 | 0 | 2.50 |
| Cactus Competitors | 1667 | 6817 | 8605 | 486 | 2.45 |
Cactus presently has a consensus price target of $74.75, suggesting a potential upside of 20.42%. As a group, “Energy Equipment & Services” companies have a potential upside of 29.92%. Given Cactus’ peers higher probable upside, analysts clearly believe Cactus has less favorable growth aspects than its peers.
Valuation and Earnings
This table compares Cactus and its peers top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Cactus | $1.08 billion | $166.01 million | 43.11 |
| Cactus Competitors | $3.23 billion | $29.73 million | 18.58 |
Cactus’ peers have higher revenue, but lower earnings than Cactus. Cactus is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Dividends
Cactus pays an annual dividend of $0.60 per share and has a dividend yield of 1.0%. Cactus pays out 41.7% of its earnings in the form of a dividend. As a group, “Energy Equipment & Services” companies pay a dividend yield of 2.9% and pay out 54.5% of their earnings in the form of a dividend. Cactus has increased its dividend for 4 consecutive years.
Summary
Cactus beats its peers on 11 of the 15 factors compared.
About Cactus
Cactus, Inc., together with its subsidiaries, designs, manufactures, sells, and leases pressure control and spoolable pipes in the United States, Australia, Canada, the Middle East, and internationally. It operates through two segments, Pressure Control and Spoolable Technologies. The Pressure Control segment designs, manufactures, sells, and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand name through service centers. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells. This segment also provides field services to install, maintain, and handle the equipment. The Spoolable Technologies segment designs, manufactures, and sells spoolable pipes and associated end fittings under the FlexSteel brand name. Its products are primarily used to transport oil, gas, and other liquids. This segment also provides field services and rental items through service centers and pipe yards, as well as offers equipment and services internationally. In addition, the company offers repair and refurbishment services. Cactus, Inc. was founded in 2011 and is headquartered in Houston, Texas.
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