Western Energy Services (OTCMKTS:WEEEF) & Weatherford International (NASDAQ:WFRD) Head to Head Contrast

Western Energy Services (OTCMKTS:WEEEF) and Weatherford International (NASDAQ:WFRD) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Western Energy Services	-3.02%	-2.24%	-1.54%
Weatherford International	8.15%	28.28%	7.85%

Valuation and Earnings

This table compares Western Energy Services and Weatherford International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Energy Services	$162.82 million	0.30	-$5.22 million	($0.14)	-10.43
Weatherford International	$4.97 billion	1.04	$506.00 million	$5.52	13.01

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

Risk & Volatility

Western Energy Services has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Weatherford International has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Western Energy Services and Weatherford International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Energy Services	0	0	0	0	0.00
Weatherford International	0	2	8	1	2.91

Weatherford International has a consensus target price of $88.56, suggesting a potential upside of 23.29%. Given Weatherford International’s stronger consensus rating and higher probable upside, analysts clearly believe Weatherford International is more favorable than Western Energy Services.

Insider and Institutional Ownership

97.2% of Weatherford International shares are owned by institutional investors. 50.0% of Western Energy Services shares are owned by insiders. Comparatively, 1.6% of Weatherford International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Western Energy Services pays an annual dividend of ($100.00) per share and has a dividend yield of -6,849.2%. Weatherford International pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Western Energy Services pays out 71,427.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weatherford International pays out 18.1% of its earnings in the form of a dividend. Weatherford International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Weatherford International beats Western Energy Services on 16 of the 17 factors compared between the two stocks.

About Western Energy Services

Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. It operates through Contract Drilling and Production Services segments. The Contract Drilling segment provides contract drilling services using drilling rigs and auxiliary equipment. The Production Services segment offers well servicing rig and related equipment, as well as rental equipment services. Western Energy Services Corp. is headquartered in Calgary, Canada.

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.