Weatherford International (NASDAQ:WFRD) and TechnipFMC (NYSE:FTI) Critical Contrast


Weatherford International (NASDAQ:WFRD) and TechnipFMC (NYSE:FTI) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Valuation and Earnings

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This table compares Weatherford International and TechnipFMC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weatherford International N/A N/A N/A N/A N/A
TechnipFMC $13.05 billion 0.22 -$3.29 billion $0.20 32.10

Weatherford International has higher earnings, but lower revenue than TechnipFMC.

Insider & Institutional Ownership

19.2% of Weatherford International shares are owned by institutional investors. Comparatively, 70.9% of TechnipFMC shares are owned by institutional investors. 0.7% of TechnipFMC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Weatherford International N/A N/A N/A
TechnipFMC 1.57% 1.40% 0.36%

Analyst Recommendations

This is a breakdown of current ratings for Weatherford International and TechnipFMC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weatherford International 0 0 1 0 3.00
TechnipFMC 1 10 7 0 2.33

TechnipFMC has a consensus target price of $10.34, indicating a potential upside of 61.00%. Given TechnipFMC’s higher possible upside, analysts clearly believe TechnipFMC is more favorable than Weatherford International.


Summary

TechnipFMC beats Weatherford International on 8 of the 9 factors compared between the two stocks.

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 Hemisphere. The firm’s products and services are Drilling and Evaluation, Production, Completions, and Well Construction. The company was founded in 1941 and is headquartered in Houston, TX.


TechnipFMC Company Profile

TechnipFMC Plc is an energy service company, which engages in the provision of solutions for the production and transformation of hydrocarbons. It operates through the following segments: Subsea and Surface Technologies. The Subsea segment engages in designing, engineering, procurement, manufacturing, fabrication and installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. The Surface Technologies segment designs and manufactures products and systems, and provides services used by oil and gas companies involved in land and offshore exploration and production of crude oil and natural gas. The company was founded on December 9, 2015 and is headquartered in London, the United Kingdom.

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