Weatherford International (NASDAQ:WFRD – Get Free Report) and Solaris Energy Infrastructure (NASDAQ:SEI – Get Free Report) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Dividends
Weatherford International pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Solaris Energy Infrastructure pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. Weatherford International pays out 14.0% of its earnings in the form of a dividend. Solaris Energy Infrastructure pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk & Volatility
Weatherford International has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.
Institutional & Insider Ownership
Profitability
This table compares Weatherford International and Solaris Energy Infrastructure’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Weatherford International | 9.65% | 46.25% | 10.44% |
Solaris Energy Infrastructure | 4.80% | 6.66% | 4.12% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Weatherford International and Solaris Energy Infrastructure, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Weatherford International | 0 | 0 | 6 | 1 | 3.14 |
Solaris Energy Infrastructure | 0 | 0 | 2 | 0 | 3.00 |
Weatherford International presently has a consensus price target of $146.57, indicating a potential upside of 87.82%. Solaris Energy Infrastructure has a consensus price target of $30.00, indicating a potential upside of 4.15%. Given Weatherford International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Weatherford International is more favorable than Solaris Energy Infrastructure.
Earnings and Valuation
This table compares Weatherford International and Solaris Energy Infrastructure”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Weatherford International | $5.14 billion | 1.10 | $417.00 million | $7.12 | 10.96 |
Solaris Energy Infrastructure | $280.14 million | 6.23 | $24.34 million | $0.44 | 65.47 |
Weatherford International has higher revenue and earnings than Solaris Energy Infrastructure. Weatherford International is trading at a lower price-to-earnings ratio than Solaris Energy Infrastructure, indicating that it is currently the more affordable of the two stocks.
Summary
Weatherford International beats Solaris Energy Infrastructure on 12 of the 17 factors compared between the two stocks.
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.
About Solaris Energy Infrastructure
Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment for oil and natural gas operators in the United States. The company provides mobile proppant and fluid management systems, as well as last mile logistics management services. It offers systems, mobilization, and last mile logistics services that are used to unload, store, and deliver proppant, water and/or chemicals at oil and natural gas well sites. The company is also involved in the transloading and storage of proppant or railcars at its transloading facility. In addition, it develops Railtronix, an inventory management software; and all-electric equipment that automates the low pressure section of oil and gas well completion sites. The company serves exploration and production, and oilfield services industries. Solaris Oilfield Infrastructure, Inc. was founded in 2014 and is headquartered in Houston, Texas.
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