Innovex International (NYSE:INVX) versus Weatherford International (OTCMKTS:WFTIF) Critical Contrast

Innovex International (NYSE:INVX) and Weatherford International (OTCMKTS:WFTIF) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Institutional and Insider Ownership

85.7% of Weatherford International shares are held by institutional investors. 3.1% of Innovex International shares are held by insiders. Comparatively, 0.4% of Weatherford International shares are held 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.

Profitability

This table compares Innovex International and Weatherford International’s 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%
Weatherford International	-53.77%	N/A	-7.53%

Risk and Volatility

Innovex International has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Weatherford International has a beta of 2.81, suggesting that its stock price is 181% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovex International	$550.34 million	1.82	$600,000.00	$1.41	10.55
Weatherford International	$5.74 billion	0.00	-$2.81 billion	($0.59)	N/A

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Innovex International and Weatherford International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	0	0	1.00
Weatherford International	0	0	0	0	0.00

Innovex International presently has a consensus target price of $15.00, suggesting a potential upside of 0.81%. Given Innovex International’s stronger consensus rating and higher probable upside, research analysts plainly believe Innovex International is more favorable than Weatherford International.

Summary

Innovex International beats Weatherford International on 8 of the 12 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 Weatherford International

Weatherford International Plc provides equipment and services to the oil and natural gas exploration and production industry. It operates through two segments: Western Hemisphere and Eastern Hemispher. The company products and services are Drilling and Evaluation, Production, Completions, and Well Construction. Weatherford International was founded in 1941 and is headquartered in Baar, Switzerland.