Comparing WBI (NYSE:WBI) & Oceaneering International (NYSE:OII)

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

Insider & Institutional Ownership

93.9% of Oceaneering International shares are owned by institutional investors. 1.3% of Oceaneering International shares are owned by company insiders. Comparatively, 50.6% of WBI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Oceaneering International and WBI’s 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%
WBI	0.54%	0.85%	0.41%

Valuation and Earnings

This table compares Oceaneering International and WBI”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oceaneering International	$2.87 billion	1.51	$353.76 million	$3.48	12.54
WBI	$525.55 million	6.60	$11.89 million	$0.08	351.41

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

Dividends

Oceaneering International pays an annual dividend of $0.60 per share and has a dividend yield of 1.4%. WBI pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Oceaneering International pays out 17.2% of its earnings in the form of a dividend. WBI pays out 250.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oceaneering International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Oceaneering International and WBI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oceaneering International	0	4	1	0	2.20
WBI	0	2	5	1	2.88

Oceaneering International presently has a consensus target price of $45.00, indicating a potential upside of 3.08%. WBI has a consensus target price of $36.75, indicating a potential upside of 30.72%. Given WBI’s stronger consensus rating and higher possible upside, analysts plainly believe WBI is more favorable than Oceaneering International.

Summary

Oceaneering International beats WBI on 9 of the 16 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 WBI

WaterBridge Infrastructure LLC is an integrated, pure-play water infrastructure company. WaterBridge Infrastructure LLC is based in HOUSTON.