Cactus (WHD) & Its Rivals Head-To-Head Comparison

Cactus (NYSE:WHD) is one of 177 public companies in the “Energy Equipment & Services” industry, but how does it weigh in compared to its competitors? We will compare Cactus to related companies based on the strength of its earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

Cactus has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Cactus’ competitors have a beta of 0.83, indicating that their average share price is 17% less volatile than the S&P 500.

Insider & Institutional Ownership

85.1% of Cactus shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Energy Equipment & Services” companies are owned by institutional investors. 12.9% of Cactus shares are owned by insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Cactus and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cactus	0	3	3	0	2.50
Cactus Competitors	1662	6806	8598	486	2.45

Cactus presently has a consensus price target of $73.25, suggesting a potential upside of 11.36%. As a group, “Energy Equipment & Services” companies have a potential upside of 22.59%. Given Cactus’ competitors higher probable upside, analysts clearly believe Cactus has less favorable growth aspects than its competitors.

Dividends

Cactus pays an annual dividend of $0.60 per share and has a dividend yield of 0.9%. Cactus pays out 41.7% of its earnings in the form of a dividend. As a group, “Energy Equipment & Services” companies pay a dividend yield of -1.9% and pay out -40.3% of their earnings in the form of a dividend. Cactus has increased its dividend for 4 consecutive years.

Profitability

This table compares Cactus and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cactus	6.69%	17.93%	11.01%
Cactus Competitors	-11.07%	7.51%	1.51%

Earnings & Valuation

This table compares Cactus and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cactus	$1.53 billion	$166.01 million	45.68
Cactus Competitors	$3.27 billion	$29.73 million	20.43

Cactus’ competitors have higher revenue, but lower earnings than Cactus. Cactus is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Cactus beats its competitors on 11 of the 15 factors compared.

About Cactus

Cactus, Inc., together with its subsidiaries, designs, manufactures, sells, and leases pressure control and spoolable pipes in the United States, Australia, Canada, the Middle East, and internationally. It operates through two segments, Pressure Control and Spoolable Technologies. The Pressure Control segment designs, manufactures, sells, and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand name through service centers. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells. This segment also provides field services to install, maintain, and handle the equipment. The Spoolable Technologies segment designs, manufactures, and sells spoolable pipes and associated end fittings under the FlexSteel brand name. Its products are primarily used to transport oil, gas, and other liquids. This segment also provides field services and rental items through service centers and pipe yards, as well as offers equipment and services internationally. In addition, the company offers repair and refurbishment services. Cactus, Inc. was founded in 2011 and is headquartered in Houston, Texas.