Smart Sand (NASDAQ:SND) versus Weatherford International (NASDAQ:WFRD) Critical Survey

Weatherford International (NASDAQ:WFRD) and Smart Sand (NASDAQ:SND) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Risk & Volatility

Weatherford International has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Smart Sand has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Insider and Institutional Ownership

97.2% of Weatherford International shares are held by institutional investors. Comparatively, 35.2% of Smart Sand shares are held by institutional investors. 1.6% of Weatherford International shares are held by insiders. Comparatively, 32.3% of Smart Sand shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Weatherford International	8.76%	28.07%	8.34%
Smart Sand	1.16%	-7.55%	-5.25%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Weatherford International and Smart Sand, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weatherford International	0	4	6	0	2.60
Smart Sand	0	1	0	0	2.00

Weatherford International currently has a consensus target price of $93.25, indicating a potential downside of 8.06%. Given Weatherford International’s stronger consensus rating and higher possible upside, analysts clearly believe Weatherford International is more favorable than Smart Sand.

Earnings and Valuation

This table compares Weatherford International and Smart Sand”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weatherford International	$4.92 billion	1.48	$431.00 million	$5.93	17.10
Smart Sand	$311.37 million	0.75	$2.99 million	$0.09	59.56

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

Summary

Weatherford International beats Smart Sand on 12 of the 14 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 Smart Sand

Smart Sand, Inc., an integrated frac and industrial sand supply and services company, engages in the excavation, processing, and sale of sands or proppant for use in hydraulic fracturing operations in the oil and gas industry in the United States. It also provides proppant logistics services; and wellsite storage solutions through SmartSystems products and services. The company sells its products primarily to oil and natural gas exploration and production companies, oilfield service companies, and industrial manufacturers. Smart Sand, Inc. was incorporated in 2011 and is headquartered in Spring, Texas.