Reviewing Weatherford International (NASDAQ:WFRD) and Drilling Tools International (NASDAQ:DTI)

Drilling Tools International (NASDAQ:DTI) and Weatherford International (NASDAQ:WFRD) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$152.03 million	1.02	$14.75 million	$0.43	12.09
Weatherford International	$5.14 billion	1.65	$417.00 million	$6.18	18.78

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

Institutional & Insider Ownership

2.8% of Drilling Tools International shares are owned by institutional investors. Comparatively, 97.2% of Weatherford International shares are owned by institutional investors. 14.7% of Drilling Tools International shares are owned by insiders. Comparatively, 1.6% of Weatherford International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Drilling Tools International has a beta of -0.9, indicating that its stock price is 190% less volatile than the S&P 500. Comparatively, Weatherford International has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	8.21%	14.88%	9.04%
Weatherford International	8.61%	52.88%	9.28%

Analyst Ratings

This is a summary of current ratings and target prices for Drilling Tools International and Weatherford International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	0	1	0	0	2.00
Weatherford International	0	0	7	1	3.13

Drilling Tools International presently has a consensus price target of $3.00, indicating a potential downside of 42.31%. Weatherford International has a consensus price target of $151.88, indicating a potential upside of 30.83%. Given Weatherford International’s stronger consensus rating and higher probable upside, analysts plainly believe Weatherford International is more favorable than Drilling Tools International.

Summary

Weatherford International beats Drilling Tools International on 14 of the 15 factors compared between the two stocks.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.

About Weatherford International

Weatherford International plc, an energy services company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, and natural gas wells worldwide. The company operates through three segments: Drilling and Evaluation; Well Construction and Completions; and Production and Intervention. It offers artificial lift systems, including reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid lift systems, as well as related automation and control systems; pressure pumping and reservoir stimulation services, such as acidizing, fracturing, cementing, and coiled-tubing intervention; and software, automation and flow measurement solutions. The company also provides safety, downhole reservoir monitoring, flow control, and multistage fracturing systems, as well as sand-control technologies, and production and isolation packers; liner hangers to suspend a casing string in high-temperature and high-pressure wells; cementing products, including plugs, float and stage equipment, and torque-and-drag reduction technology for zonal isolation; and pre-job planning and installation services. In addition, it offers directional drilling services, and logging and measurement services while drilling; services related to rotary-steerable systems, high temperature and high pressure sensors, drilling reamers, and circulation subs; rotating control devices and advanced automated control systems, as well as closed loop drilling, air drilling, managed-pressure drilling, and underbalanced drilling services; open-hole and cased-hole logging services; and intervention and remediation services. Further, it provides tubular handling, management, and connection services; and re-entry, fishing, and well abandonment services, as well as patented bottom hole, tubular-handling equipment, pressure-control equipment, and drill pipe and collars. The company was incorporated in 1972 and is based in Houston, Texas.