Analyzing Weatherford International PLC (WFT) & Key Energy Services (KEG)
Weatherford International PLC (NYSE: WFT) and Key Energy Services (NYSE:KEG) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
50.5% of Key Energy Services shares are held by institutional investors. 1.1% of Weatherford International PLC shares are held by company insiders. Comparatively, 4.0% of Key Energy Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Weatherford International PLC and Key Energy Services’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Weatherford International PLC||$5.51 billion||0.71||-$256.00 million||($3.19)||-1.25|
|Key Energy Services||$420.39 million||0.58||-$47.27 million||N/A||N/A|
Key Energy Services has higher revenue, but lower earnings than Weatherford International PLC.
This table compares Weatherford International PLC and Key Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Weatherford International PLC||-53.49%||-65.33%||-10.11%|
|Key Energy Services||N/A||N/A||N/A|
This is a summary of recent ratings and price targets for Weatherford International PLC and Key Energy Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weatherford International PLC||1||6||18||0||2.68|
|Key Energy Services||0||4||2||0||2.33|
Weatherford International PLC presently has a consensus target price of $6.39, suggesting a potential upside of 60.47%. Key Energy Services has a consensus target price of $19.40, suggesting a potential upside of 60.46%. Given Weatherford International PLC’s stronger consensus rating and higher possible upside, equities analysts clearly believe Weatherford International PLC is more favorable than Key Energy Services.
Key Energy Services beats Weatherford International PLC on 6 of the 11 factors compared between the two stocks.
Weatherford International PLC Company Profile
Weatherford International Ltd. (Weatherford) is a provider of equipment and services used in the drilling, evaluation, completion, production and intervention of oil and natural gas wells. The Company operates four segments: North America, Latin America, Europe/West Africa/the former Soviet Union (FSU) and Middle East/North Africa/Asia. It operates in over 100 countries and have manufacturing facilities and sales, service and distribution locations in approximately all of the oil and natural gas producing regions in the world. The Company operates in ten service lines: artificial lift systems; stimulation and chemicals; drilling services; well construction; integrated drilling; completion systems; drilling tools; wireline and evaluation services; re-entry and fishing and pipeline and specialty services. Weatherford Switzerland conducts all of its operations through its subsidiaries, including Weatherford Bermuda and Weatherford International, Inc. (Weatherford Delaware).
Key Energy Services Company Profile
Key Energy Services, Inc. is an onshore, rig-based well servicing contractor. The Company provides a range of well services to oil companies, foreign national oil companies, and independent oil and natural gas production companies. The Company operates in five segments: U.S. Rig Services, Fluid Management Services, Coiled Tubing Services, Fishing and Rental Services, and International. Its U.S. Rig Services, Fluid Management Services, Coiled Tubing Services, Fishing and Rental Services operate geographically within the United States. The International segment includes its operations in Mexico, Colombia, Ecuador, Russia, Bahrain and Oman. The Company’s services include rig-based and coiled tubing-based well maintenance and workover services, well completion and recompletion services, fluid management services, fishing and rental services, and other ancillary oilfield services. Additionally, certain of its rigs provide specialty drilling applications.
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