Halliburton (NYSE: HAL) and Cactus (NYSE:WHD) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.
Earnings and Valuation
This table compares Halliburton and Cactus’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Halliburton||$20.62 billion||1.99||-$463.00 million||$0.37||126.81|
This is a breakdown of recent recommendations and price targets for Halliburton and Cactus, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Halliburton presently has a consensus target price of $59.15, suggesting a potential upside of 26.07%. Cactus has a consensus target price of $31.00, suggesting a potential upside of 15.46%. Given Halliburton’s higher probable upside, research analysts plainly believe Halliburton is more favorable than Cactus.
Insider & Institutional Ownership
80.4% of Halliburton shares are owned by institutional investors. 0.5% of Halliburton shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Halliburton and Cactus’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Halliburton pays an annual dividend of $0.72 per share and has a dividend yield of 1.5%. Cactus does not pay a dividend. Halliburton pays out 194.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Halliburton beats Cactus on 8 of the 11 factors compared between the two stocks.
Halliburton Company provides services and products to the upstream oil and natural gas industry throughout the lifecycle of the reservoir, from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the field. It operates through two segments: the Completion and Production segment, and the Drilling and Evaluation segment. The Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift and completion services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation and wellbore placement solutions that enable customers to model, measure, drill and optimize their well construction activities. It serves national and independent oil and natural gas companies. As of December 31, 2016, it had conducted business in approximately 70 countries around the world.
Cactus, Inc. is focused on designing, manufacturing, selling and renting a wellheads and pressure control equipment. Its principal products, include Cactus SafeDrill wellhead systems, frac stacks, zipper manifolds and production trees. The Cactus SafeDrill wellhead systems employ technology traditionally associated with deepwater applications, which allows technicians to land and secure casing strings safely from the rig floor without the need to descend into the well cellar. The Company’s products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion (including fracturing) and production Phases of its customers’ wells.
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