Head-To-Head Analysis: Cactus (NYSE:WHD) and Innovex International (NYSE:INVX)

Cactus (NYSE:WHD) and Innovex International (NYSE:INVX) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cactus	16.57%	20.24%	14.32%
Innovex International	12.31%	-0.73%	-0.61%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cactus and Innovex International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cactus	1	4	2	0	2.14
Innovex International	1	0	0	1	2.50

Cactus currently has a consensus price target of $56.40, indicating a potential downside of 9.25%. Innovex International has a consensus price target of $15.00, indicating a potential downside of 10.98%. Given Cactus’ higher probable upside, analysts plainly believe Cactus is more favorable than Innovex International.

Valuation and Earnings

This table compares Cactus and Innovex International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cactus	$1.10 billion	4.51	$169.17 million	$2.82	22.04
Innovex International	$424.06 million	2.67	$600,000.00	$1.41	11.95

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

Institutional & Insider Ownership

85.1% of Cactus shares are held by institutional investors. 17.7% of Cactus shares are held by company insiders. Comparatively, 3.1% of Innovex International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Cactus has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Innovex International has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Summary

Cactus beats Innovex International on 13 of the 15 factors compared between the two stocks.

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.

About Innovex International

Innovex Downhole Solutions Inc. designs, manufactures and installs mission-critical drilling & deployment, well construction, completion, production and fishing & intervention solutions to support upstream onshore and offshore activities. Innovex Downhole Solutions Inc., formerly known as Dril-Quip, is based in HOUSTON.