Head-To-Head Review: Drilling Tools International (NASDAQ:DTI) and Weatherford International (OTCMKTS:WFTIF)

Drilling Tools International (NASDAQ:DTI) and Weatherford International (OTCMKTS:WFTIF) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Risk and Volatility

Drilling Tools International has a beta of -0.43, meaning that its share price is 143% less volatile than the S&P 500. Comparatively, Weatherford International has a beta of 2.81, meaning that its share price is 181% more volatile than the S&P 500.

Valuation & Earnings

This table compares Drilling Tools International and Weatherford International’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$152.03 million	1.14	$14.75 million	N/A	N/A
Weatherford International	$5.74 billion	0.00	-$2.81 billion	($0.59)	N/A

Drilling Tools International has higher earnings, but lower revenue than Weatherford International.

Profitability

This table compares Drilling Tools International and Weatherford International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	9.70%	20.30%	11.50%
Weatherford International	-53.77%	N/A	-7.53%

Analyst Recommendations

This is a summary of current recommendations and price targets for Drilling Tools International and Weatherford International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	0	1	0	0	2.00
Weatherford International	0	0	0	0	N/A

Drilling Tools International presently has a consensus price target of $3.00, indicating a potential downside of 48.28%.

Insider and Institutional Ownership

2.8% of Drilling Tools International shares are held by institutional investors. Comparatively, 85.7% of Weatherford International shares are held by institutional investors. 14.7% of Drilling Tools 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 company will outperform the market over the long term.

Summary

Drilling Tools International beats Weatherford International on 5 of the 8 factors compared between the two stocks.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation 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 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.