Cactus (NYSE:WHD – Get Free Report) and Innovex International (NYSE:INVX – Get Free Report) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.
Volatility & Risk
Cactus has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, Innovex International has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
Earnings & Valuation
This table compares Cactus and Innovex International”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Cactus | $1.13 billion | 4.46 | $169.17 million | $2.82 | 22.52 |
Innovex International | $424.06 million | 2.66 | $600,000.00 | $1.41 | 11.91 |
Insider & Institutional Ownership
85.1% of Cactus shares are held by institutional investors. 17.7% of Cactus shares are held by company insiders. Comparatively, 3.1% of Innovex International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Cactus and Innovex International’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Cactus | 16.57% | 20.24% | 14.32% |
Innovex International | 12.31% | -0.73% | -0.61% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Cactus and Innovex International, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Cactus | 1 | 4 | 2 | 0 | 2.14 |
Innovex International | 1 | 0 | 0 | 1 | 2.50 |
Cactus currently has a consensus price target of $56.40, indicating a potential downside of 11.18%. Innovex International has a consensus price target of $15.00, indicating a potential downside of 10.66%. Given Innovex International’s stronger consensus rating and higher possible upside, analysts plainly believe Innovex International is more favorable than Cactus.
Summary
Cactus beats Innovex International on 12 of the 15 factors compared between the two stocks.
About Cactus
Cactus, Inc., together with its subsidiaries, designs, manufactures, sells, and leases pressure control and spoolable pipes in the United States, Australia, Canada, the Middle East, and internationally. It operates through two segments, Pressure Control and Spoolable Technologies. The Pressure Control segment designs, manufactures, sells, and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand name through service centers. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells. This segment also provides field services to install, maintain, and handle the equipment. The Spoolable Technologies segment designs, manufactures, and sells spoolable pipes and associated end fittings under the FlexSteel brand name. Its products are primarily used to transport oil, gas, and other liquids. This segment also provides field services and rental items through service centers and pipe yards, as well as offers equipment and services internationally. In addition, the company offers repair and refurbishment services. Cactus, Inc. was founded in 2011 and is headquartered in Houston, Texas.
About Innovex International
Innovex Downhole Solutions Inc. designs, manufactures and installs mission-critical drilling & deployment, well construction, completion, production and fishing & intervention solutions to support upstream onshore and offshore activities. Innovex Downhole Solutions Inc., formerly known as Dril-Quip, is based in HOUSTON.
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