Basic Energy Services (NYSE: BAS) and Weatherford International PLC (NYSE:WFT) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Volatility & Risk

Basic Energy Services has a beta of 2.85, indicating that its stock price is 185% more volatile than the S&P 500. Comparatively, Weatherford International PLC has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500.

Valuation and Earnings

This table compares Basic Energy Services and Weatherford International PLC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Basic Energy Services $692.45 million 0.70 -$25.85 million ($1,205.99) -0.02
Weatherford International PLC $5.51 billion 0.80 -$256.00 million ($3.19) -1.39

Basic Energy Services has higher revenue, but lower earnings than Weatherford International PLC. Weatherford International PLC is trading at a lower price-to-earnings ratio than Basic Energy Services, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Basic Energy Services and Weatherford International PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Basic Energy Services 0 5 4 0 2.44
Weatherford International PLC 1 6 18 0 2.68

Basic Energy Services currently has a consensus price target of $23.90, suggesting a potential upside of 20.83%. Weatherford International PLC has a consensus price target of $6.39, suggesting a potential upside of 44.17%. Given Weatherford International PLC’s stronger consensus rating and higher probable upside, analysts plainly believe Weatherford International PLC is more favorable than Basic Energy Services.

Profitability

This table compares Basic Energy Services and Weatherford International PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Basic Energy Services -44.40% -67.31% -20.33%
Weatherford International PLC -53.49% -65.33% -10.11%

Summary

Weatherford International PLC beats Basic Energy Services on 8 of the 11 factors compared between the two stocks.

Basic Energy Services Company Profile

Basic Energy Services, Inc. provides a range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. The Company operates through the segment, which include Completion and Remedial Services, Fluid Services, Well Servicing and Contract Drilling. The Company’s operations are managed regionally and are concentrated in the United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, California, Ohio and Pennsylvania. Its operations are focused on liquids-rich basins, as well as natural gas-focused shale plays characterized by prolific reserves. It has a presence in the Permian Basin and the Bakken, Eagle Ford, Haynesville and Marcellus shales.

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).

Receive News & Stock Ratings for Basic Energy Services Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Basic Energy Services Inc. and related stocks with our FREE daily email newsletter.