Contrasting Weatherford International (OTCMKTS:WFTIQ) and Ranger Energy Services (NYSE:RNGR)

Ranger Energy Services (NYSE:RNGR) and Weatherford International (OTCMKTS:WFTIQ) are both small-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Insider & Institutional Ownership

68.1% of Ranger Energy Services shares are owned by institutional investors. 2.8% of Ranger Energy Services shares are owned by insiders. Comparatively, 0.1% of Weatherford International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Ranger Energy Services and Weatherford International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ranger Energy Services	0	2	1	0	2.33
Weatherford International	0	0	0	0	0.00

Ranger Energy Services presently has a consensus price target of $20.00, indicating a potential upside of 24.15%. Given Ranger Energy Services’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Ranger Energy Services is more favorable than Weatherford International.

Valuation and Earnings

This table compares Ranger Energy Services and Weatherford International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ranger Energy Services	$546.90 million	0.69	$12.30 million	$0.60	26.85
Weatherford International	$3.69 billion	0.01	-$1.92 billion	N/A	N/A

Ranger Energy Services has higher earnings, but lower revenue than Weatherford International.

Profitability

This table compares Ranger Energy Services and Weatherford International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ranger Energy Services	2.36%	4.87%	3.33%
Weatherford International	-32.44%	-57.14%	-10.97%

Summary

Ranger Energy Services beats Weatherford International on 10 of the 11 factors compared between the two stocks.

About Ranger Energy Services

Ranger Energy Services, Inc. provides onshore high specification well service rigs, wireline services, and complementary services to exploration and production companies in the United States. It operates through three segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. The High Specification Rigs segment offers well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well; and well maintenance services. This segment also has a fleet of 402 well service rigs. The Wireline Services segment provides wireline production and intervention services to provide information to identify and resolve well production problems through cased hole logging, perforating, mechanical, and pipe recovery services; wireline completion services that are used primarily for pump down perforating operations to create perforations or entry holes through the production casing; and pumping services. This segment also has a fleet of 66 wireline units and 29 high-pressure pump trucks. The Processing Solutions and Ancillary Services segment rents well service-related equipment consisting of fluid pumps, power swivels, well control packages, hydraulic catwalks, frac tanks, pipe racks, and pipe handling tools; and coiled tubing, decommissioning, and snubbing services, as well as provides proprietary and modular equipment for the processing of natural gas streams. This segment also engages in the rental, installation, commissioning, start up, operation, and maintenance of mechanical refrigeration units, nitrogen gas liquid stabilizer units, nitrogen gas liquid storage units, and related equipment. Ranger Energy Services, Inc. was incorporated in 2017 and is headquartered in Houston, Texas.

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 Hemisphere. The firm’s products and services are Drilling and Evaluation, Production, Completions, and Well Construction. The company was founded in 1941 and is headquartered in Houston, TX.