Reviewing National-Oilwell Varco (NYSE:NOV) and Weatherford International (NYSE:WFTIQ)

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National-Oilwell Varco $8.48 billion 1.06 -$6.10 billion ($0.72) -32.42
Weatherford International $5.74 billion 0.00 -$2.81 billion ($0.59) -0.03

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

Net Margins Return on Equity Return on Assets
National-Oilwell Varco -71.88% -2.86% -1.78%
Weatherford International -68.93% N/A -13.49%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for National-Oilwell Varco and Weatherford International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National-Oilwell Varco 1 11 9 0 2.38
Weatherford International 0 0 1 0 3.00

National-Oilwell Varco currently has a consensus target price of $26.75, indicating a potential upside of 14.61%. Given National-Oilwell Varco’s higher possible upside, equities analysts clearly believe National-Oilwell Varco is more favorable than Weatherford International.

Institutional and Insider Ownership

95.4% of National-Oilwell Varco shares are held by institutional investors. Comparatively, 1.0% of Weatherford International shares are held by institutional investors. 0.9% of National-Oilwell Varco shares are held by insiders. Comparatively, 0.4% of Weatherford International shares are held by 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

National-Oilwell Varco beats Weatherford International on 7 of the 13 factors compared between the two stocks.

About National-Oilwell Varco

National Oilwell Varco, Inc. designs, manufactures, and sells systems, components, and products for oil and gas drilling and production worldwide. It operates in three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. The Wellbore Technologies segment offers various equipment and technologies used to perform drilling operations. It also provides solids control and waste management equipment and services; drilling fluids; portable power generation products; drill and wired pipes; drilling optimization and automation services; tubular inspection, repair, and coating services; rope access inspection, instrumentation, and measuring and monitoring services; downhole and fishing tools; steerable technologies; hole openers; and drill bits. The Completion & Production Solutions segment provides equipment and technologies for hydraulic fracture stimulation, including pressure pumping trucks, blenders, sanders, hydration units, injection units, flowline, and manifolds; well intervention, such as coiled tubing units, coiled tubing, and wireline units, as well as blowout preventers and tools; onshore production comprising fluid processing systems, composite pipes, surface transfer and progressive cavity pumps, and artificial lift systems; offshore production that include fluid processing systems, floating production systems, and subsea production technologies; and connectors for conductor pipes. The Rig Technologies segment offers substructures, derricks, and masts; cranes; jacking systems; pipe lifting, racking, rotating, and assembly systems; mud pumps; blowout preventers; drives and generators; rig instrumentation and control systems; mooring, anchor, and deck handling machinery; and pipelay and construction systems. It also provides spare parts, repair, and rentals, as well as remote equipment monitoring, technical support, field service, and customer training services. The company was founded in 1862 and is based in Houston, Texas.

About Weatherford International

Weatherford International plc, an oilfield service company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. 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, 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; managed pressure drilling, conventional mud-logging, drilling instrumentation, gas analysis, wellsite consultancy, and open hole and cased-hole logging services; reservoir solutions and software products; and intervention and remediation services. Further, the company provides equipment and related services through a fleet of land drilling and workover rigs. Weatherford International plc was founded in 1972 and is based in Huston, Texas. On July 1, 2019, Weatherford International, plc, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

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