Weatherford International (OTCMKTS:WFTIF) & Solaris Energy Infrastructure (NASDAQ:SEI) Critical Analysis

Solaris Energy Infrastructure (NASDAQ:SEI) and Weatherford International (OTCMKTS:WFTIF) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Volatility & Risk

Solaris Energy Infrastructure has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Weatherford International has a beta of 2.81, indicating that its stock price is 181% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Solaris Energy Infrastructure and Weatherford International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solaris Energy Infrastructure	0	0	2	0	3.00
Weatherford International	0	0	0	0	0.00

Solaris Energy Infrastructure currently has a consensus target price of $30.00, suggesting a potential upside of 3.56%. Given Solaris Energy Infrastructure’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Solaris Energy Infrastructure is more favorable than Weatherford International.

Valuation and Earnings

This table compares Solaris Energy Infrastructure and Weatherford International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solaris Energy Infrastructure	$280.14 million	6.94	$24.34 million	$0.44	65.84
Weatherford International	$5.74 billion	0.00	-$2.81 billion	($0.59)	N/A

Solaris Energy Infrastructure has higher earnings, but lower revenue than Weatherford International. 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solaris Energy Infrastructure	4.80%	6.66%	4.12%
Weatherford International	-53.77%	N/A	-7.53%

Institutional & Insider Ownership

67.4% of Solaris Energy Infrastructure shares are held by institutional investors. Comparatively, 85.7% of Weatherford International shares are held by institutional investors. 34.7% of Solaris Energy Infrastructure shares are held by company insiders. Comparatively, 0.4% of Weatherford International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Solaris Energy Infrastructure beats Weatherford International on 10 of the 13 factors compared between the two stocks.

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.

About Weatherford International

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.