Newpark Resources (NYSE:NR) and Weatherford International (OTCMKTS:WFTIF) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.
Volatility and Risk
Newpark Resources has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Weatherford International has a beta of 2.86, suggesting that its share price is 186% more volatile than the S&P 500.
Valuation & Earnings
This table compares Newpark Resources and Weatherford International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Newpark Resources||$946.55 million||0.63||$32.28 million||$0.41||15.95|
|Weatherford International||$5.74 billion||0.01||-$2.81 billion||($0.59)||-0.08|
Newpark Resources has higher earnings, but lower revenue than Weatherford International. Weatherford International is trading at a lower price-to-earnings ratio than Newpark Resources, indicating that it is currently the more affordable of the two stocks.
This table compares Newpark Resources and Weatherford International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Newpark Resources and Weatherford International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Newpark Resources presently has a consensus price target of $12.50, suggesting a potential upside of 91.13%. Given Newpark Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Newpark Resources is more favorable than Weatherford International.
Insider & Institutional Ownership
98.7% of Newpark Resources shares are held by institutional investors. Comparatively, 85.7% of Weatherford International shares are held by institutional investors. 5.2% of Newpark Resources 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, hedge funds and endowments believe a stock will outperform the market over the long term.
Newpark Resources beats Weatherford International on 12 of the 14 factors compared between the two stocks.
Newpark Resources Company Profile
Newpark Resources, Inc. provides products, rentals, and services primarily to the oil and natural gas exploration and production industry. It operates through two segments, Fluids Systems, and Mats and Integrated Services. The Fluids Systems segment offers drilling and completion fluids solutions, and technical services to customers in the North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific regions. The Mats and Integrated Services segment offers composite mat rental, construction, and related site services to customers in various markets, including oil and gas exploration and production, electrical transmission and distribution, pipeline, solar, petrochemical, and construction industries in the United States, Canada, Europe, and internationally. The company was founded in 1932 and is headquartered in The Woodlands, Texas.
Weatherford International Company Profile
Weatherford International Plc provides equipment and services to the oil and natural gas exploration and production industry. It operates through two segments: Western Hemisphere and Eastern Hemispher. The company products and services are Drilling and Evaluation, Production, Completions, and Well Construction. Weatherford International was founded in 1941 and is headquartered in Baar, Switzerland.
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