Critical Contrast: Cactus (NYSE:WHD) & Oceaneering International (NYSE:OII)

Oceaneering International (NYSE:OII) and Cactus (NYSE:WHD) are both mid-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Volatility and Risk

Oceaneering International has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Cactus has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Oceaneering International and Cactus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oceaneering International	0	4	1	0	2.20
Cactus	0	4	3	0	2.43

Oceaneering International currently has a consensus price target of $45.00, indicating a potential downside of 7.49%. Cactus has a consensus price target of $66.80, indicating a potential downside of 4.45%. Given Cactus’ stronger consensus rating and higher possible upside, analysts plainly believe Cactus is more favorable than Oceaneering International.

Valuation & Earnings

This table compares Oceaneering International and Cactus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oceaneering International	$2.78 billion	1.74	$353.76 million	$3.48	13.98
Cactus	$1.08 billion	5.19	$166.01 million	$1.17	59.75

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

Profitability

This table compares Oceaneering International and Cactus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oceaneering International	12.19%	18.40%	7.46%
Cactus	6.01%	16.66%	10.81%

Insider and Institutional Ownership

93.9% of Oceaneering International shares are owned by institutional investors. Comparatively, 85.1% of Cactus shares are owned by institutional investors. 1.3% of Oceaneering International shares are owned by insiders. Comparatively, 12.9% of Cactus shares are owned by 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.

Summary

Cactus beats Oceaneering International on 8 of the 14 factors compared between the two stocks.

About Oceaneering International

Oceaneering International, Inc. provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. It operates through Subsea Robotics, Manufactured Products, Offshore Projects Group, Integrity Management & Digital Solutions, and Aerospace and Defense Technologies segments. The company offers remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair; ROV tooling; and survey services, such as hydrographic survey, positioning services, and autonomous underwater vehicles for geoscience. It also provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robotic technology and entertainment systems to various industries. In addition, the company offers subsea installation and intervention, including riserless light well intervention inspection, maintenance, and repair services; installation and workover control systems, and ROV workover control systems; diving services; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions. Further, it provides asset integrity management, software and analytical solutions for the bulk cargo maritime industry, and software, digital, and connectivity solutions for the energy industry, as well as government services and products, including engineering and related manufacturing in defense and space exploration activities to the United States' government agencies and their prime contractors. Oceaneering International, Inc. was founded in 1964 and is headquartered in Houston, Texas.

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.