Contrasting Cactus (NYSE:WHD) and Innovex International (NYSE:INVX)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovex International	$424.06 million	2.75	$600,000.00	$1.41	12.30
Cactus	$1.13 billion	4.48	$169.17 million	$2.82	22.63

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.

Analyst Recommendations

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

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

Innovex International currently has a consensus price target of $15.00, suggesting a potential downside of 13.49%. Cactus has a consensus price target of $56.40, suggesting a potential downside of 11.61%. Given Cactus’ higher possible upside, analysts clearly believe Cactus is more favorable than Innovex International.

Profitability

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

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

Insider & Institutional Ownership

85.1% of Cactus shares are owned by institutional investors. 1.7% of Innovex International shares are owned by insiders. Comparatively, 16.8% of Cactus shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

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

Summary

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

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.

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.