Financial Survey: Deep Down (DPDW) vs. Weatherford International PLC (WFT)

Deep Down (OTCMKTS: DPDW) and Weatherford International PLC (NYSE:WFT) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Deep Down and Weatherford International PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deep Down 0 0 0 0 N/A
Weatherford International PLC 1 6 18 0 2.68

Weatherford International PLC has a consensus price target of $6.15, indicating a potential upside of 66.26%. Given Weatherford International PLC’s higher probable upside, analysts plainly believe Weatherford International PLC is more favorable than Deep Down.

Insider and Institutional Ownership

6.0% of Deep Down shares are owned by institutional investors. 1.2% of Weatherford International PLC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Deep Down and Weatherford International PLC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Deep Down $26.05 million 0.54 $3.07 million $0.10 9.25
Weatherford International PLC $5.51 billion 0.66 -$256.00 million ($3.19) -1.16

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

Profitability

This table compares Deep Down and Weatherford International PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deep Down 6.51% 7.27% 6.26%
Weatherford International PLC -53.49% -65.33% -10.11%

Volatility and Risk

Deep Down has a beta of -0.1, indicating that its share price is 110% less volatile than the S&P 500. Comparatively, Weatherford International PLC has a beta of 2.45, indicating that its share price is 145% more volatile than the S&P 500.

About Deep Down

Deep Down, Inc. is engaged in the oilfield services industry. The Company operates through Deep Down Delaware segment. The Company is a provider of specialized services to the offshore energy industry to support deep water and ultra-deep water exploration, development and production of oil and gas, and other maritime operations. It also produces custom engineered products that assist it in fulfilling service objectives for specific projects on a contractual basis. The Company designs and manufactures deep water and ultra-deep water, surface and offshore equipment solutions, which are used by independent and foreign national oil and gas companies in offshore areas across the world. The Company provides engineering and management services, including the design, installation and retrieval of subsea equipment and systems, connection and termination operations, well-commissioning services, as well as construction support and remotely operated vehicle (ROV) operations support.

About Weatherford International PLC

Weatherford International Ltd. (Weatherford) is a provider of equipment and services used in the drilling, evaluation, completion, production and intervention of oil and natural gas wells. The Company operates four segments: North America, Latin America, Europe/West Africa/the former Soviet Union (FSU) and Middle East/North Africa/Asia. It operates in over 100 countries and have manufacturing facilities and sales, service and distribution locations in approximately all of the oil and natural gas producing regions in the world. The Company operates in ten service lines: artificial lift systems; stimulation and chemicals; drilling services; well construction; integrated drilling; completion systems; drilling tools; wireline and evaluation services; re-entry and fishing and pipeline and specialty services. Weatherford Switzerland conducts all of its operations through its subsidiaries, including Weatherford Bermuda and Weatherford International, Inc. (Weatherford Delaware).

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