Cactus (NYSE:WHD – Get Free Report) and Sable Offshore (NYSE:SOC – Get Free Report) are both mid-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
Valuation and Earnings
This table compares Cactus and Sable Offshore”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Cactus | $1.14 billion | 3.06 | $185.41 million | $2.81 | 15.51 |
Sable Offshore | N/A | N/A | -$629.07 million | N/A | N/A |
Volatility and Risk
Cactus has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Sable Offshore has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.
Institutional and Insider Ownership
85.1% of Cactus shares are held by institutional investors. Comparatively, 26.2% of Sable Offshore shares are held by institutional investors. 13.8% of Cactus shares are held by company insiders. Comparatively, 36.4% of Sable Offshore shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Cactus and Sable Offshore, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Cactus | 1 | 1 | 2 | 0 | 2.25 |
Sable Offshore | 1 | 0 | 6 | 0 | 2.71 |
Cactus currently has a consensus target price of $52.00, indicating a potential upside of 19.35%. Sable Offshore has a consensus target price of $30.33, indicating a potential downside of 4.67%. Given Cactus’ higher probable upside, analysts clearly believe Cactus is more favorable than Sable Offshore.
Profitability
This table compares Cactus and Sable Offshore’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Cactus | 16.78% | 18.99% | 13.76% |
Sable Offshore | N/A | -145.52% | -23.70% |
Summary
Cactus beats Sable Offshore on 8 of the 11 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 Sable Offshore
Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.
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