Cactus (NYSE: WHD) and National-Oilwell Varco (NYSE:NOV) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Institutional and Insider Ownership
37.1% of Cactus shares are held by institutional investors. Comparatively, 93.9% of National-Oilwell Varco shares are held by institutional investors. 96.1% of Cactus shares are held by company insiders. Comparatively, 0.8% of National-Oilwell Varco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent ratings and recommmendations for Cactus and National-Oilwell Varco, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cactus currently has a consensus price target of $33.50, indicating a potential downside of 1.56%. National-Oilwell Varco has a consensus price target of $37.33, indicating a potential downside of 10.94%. Given Cactus’ stronger consensus rating and higher probable upside, research analysts clearly believe Cactus is more favorable than National-Oilwell Varco.
This table compares Cactus and National-Oilwell Varco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
National-Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Cactus does not pay a dividend. National-Oilwell Varco pays out -47.6% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Cactus and National-Oilwell Varco’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cactus||$341.19 million||7.47||$66.54 million||$1,258.36||0.03|
|National-Oilwell Varco||$7.30 billion||2.19||-$237.00 million||($0.42)||-99.81|
Cactus has higher earnings, but lower revenue than National-Oilwell Varco. National-Oilwell Varco is trading at a lower price-to-earnings ratio than Cactus, indicating that it is currently the more affordable of the two stocks.
Cactus beats National-Oilwell Varco on 11 of the 15 factors compared between the two stocks.
Cactus Company Profile
Cactus, Inc. designs, manufactures, sells, and rents a range of wellheads and pressure control equipment. The company's principal products include Cactus SafeDrill wellhead systems, frac stacks, zipper manifolds, and production trees. It also provides field services, such as 24-hour service crews to assist with the installation, maintenance, and safe handling of the wellhead and pressure control equipment, as well as repair services for equipment that it sells or rents. The company sells or rents its products for onshore unconventional oil and gas wells that are utilized during the drilling, completion, and production phases of its customers' wells. It operates 14 service centers in the United States, as well as a service center in Eastern Australia. The company was founded in 2011 and is headquartered in Houston, Texas.
National-Oilwell Varco Company Profile
National Oilwell Varco, Inc. designs, manufactures, and sells systems and components used in oil and gas drilling and production; and provides oilfield services to the upstream oil and gas industry worldwide. It operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies. The Wellbore Technologies segment designs, manufactures, rents, and sells various equipment and technologies. This segment also provides solids control and waste management equipment and services, drilling and completion fluids, data acquisition and analytics, water management solutions, managed-pressure-drilling systems, and wellsite logistics solutions; tubular inspection, repair and coating, rope access inspection, and instrumentation services; and power generation equipment, drill and wired pipes, instruments, measuring and monitoring equipment, downhole and fishing tools, hole openers, and drill bits The Completion & Production Solutions segment designs, manufactures, and sells pumping trucks, blenders, sanders, hydration units, injection units, flowline, and manifolds; coiled tubing units, coiled tubing, and wireline units and tools; composite pipe, surface transfer and progressive cavity pumps, and artificial lift systems; and floating production systems and subsea production technologies. The Rig Technologies segment offers land rigs; offshore drilling equipment packages; and drilling rig components It provides substructures, derricks, and masts; cranes; pipe lifting, racking, rotating, and assembly systems; fluid transfer technologies, such as mud pumps; pressure control equipment, including blowout preventers; power transmission systems comprising drives and generators; and rig instrumentation and control systems. This segment also offers spare parts; and repair and rental services, as well as remote equipment monitoring, technical support, field, and training services. The company was founded in 1862 and is based in Houston, Texas.
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