Financial Analysis: Weatherford International (NASDAQ:WFRD) versus Victory Oilfield Tech (OTCMKTS:VYEY)

Weatherford International (NASDAQ:WFRD) and Victory Oilfield Tech (OTCMKTS:VYEY) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Insider & Institutional Ownership

97.2% of Weatherford International shares are held by institutional investors. 2.1% of Weatherford International shares are held by company insiders. Comparatively, 97.6% of Victory Oilfield Tech shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Weatherford International has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Victory Oilfield Tech has a beta of -1.21, suggesting that its stock price is 221% less volatile than the S&P 500.

Earnings & Valuation

This table compares Weatherford International and Victory Oilfield Tech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weatherford International	$4.92 billion	1.52	$431.00 million	$6.39	16.22
Victory Oilfield Tech	N/A	N/A	-$540,000.00	N/A	N/A

Weatherford International has higher revenue and earnings than Victory Oilfield Tech.

Profitability

This table compares Weatherford International and Victory Oilfield Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weatherford International	9.49%	28.31%	8.95%
Victory Oilfield Tech	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for Weatherford International and Victory Oilfield Tech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weatherford International	0	4	7	0	2.64
Victory Oilfield Tech	0	0	0	0	0.00

Weatherford International presently has a consensus price target of $110.33, suggesting a potential upside of 6.46%. Given Weatherford International’s stronger consensus rating and higher possible upside, analysts clearly believe Weatherford International is more favorable than Victory Oilfield Tech.

Summary

Weatherford International beats Victory Oilfield Tech on 10 of the 11 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 Victory Oilfield Tech

Victory Oilfield Tech, Inc. operates as an oilfield energy technology products company in the United States. The company offers patented oil and gas drilling products. It also provides various hardbanding solutions to the oilfield operators for drill and weight pipes, tubing, and drill collars, as well as grinding services. The company was formerly known as Victory Energy Corporation and changed its name to Victory Oilfield Tech, Inc. in May 2018. Victory Oilfield Tech, Inc. was incorporated in 1982 and is based in Austin, Texas.