Solaris Energy Infrastructure (NASDAQ:SEI – Get Free Report) and Weatherford International (OTCMKTS:WFTIF – Get Free Report) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.
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% |
Insider & Institutional Ownership
67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. Comparatively, 85.7% of Weatherford International shares are owned by institutional investors. 34.7% of Solaris Energy Infrastructure shares are owned by insiders. Comparatively, 0.4% of Weatherford International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Analyst Ratings
This is a summary of current ratings 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 | 3 | 1 | 3.25 |
Weatherford International | 0 | 0 | 0 | 0 | 0.00 |
Solaris Energy Infrastructure presently has a consensus price target of $41.50, indicating a potential upside of 56.47%. Given Solaris Energy Infrastructure’s stronger consensus rating and higher probable upside, analysts clearly 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 | $292.95 million | 6.08 | $24.34 million | $0.44 | 60.28 |
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.
Summary
Solaris Energy Infrastructure beats Weatherford International on 11 of the 14 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.
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