RPC (NYSE:RES) versus WBI (NYSE:WBI) Financial Analysis

WBI (NYSE:WBI) and RPC (NYSE:RES) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Dividends

WBI pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. RPC pays an annual dividend of $0.16 per share and has a dividend yield of 2.7%. WBI pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RPC pays out 177.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares WBI and RPC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WBI	$628.62 million	6.49	$11.89 million	$0.25	132.08
RPC	$1.79 billion	0.73	$32.08 million	$0.09	65.62

RPC has higher revenue and earnings than WBI. RPC is trading at a lower price-to-earnings ratio than WBI, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares WBI and RPC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WBI	N/A	N/A	N/A
RPC	1.28%	4.82%	3.60%

Analyst Ratings

This is a summary of current recommendations and price targets for WBI and RPC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WBI	0	2	3	0	2.60
RPC	1	3	0	0	1.75

WBI presently has a consensus target price of $34.20, suggesting a potential upside of 3.57%. RPC has a consensus target price of $5.33, suggesting a potential downside of 9.70%. Given WBI’s stronger consensus rating and higher probable upside, equities research analysts clearly believe WBI is more favorable than RPC.

Institutional & Insider Ownership

41.1% of RPC shares are owned by institutional investors. 50.6% of WBI shares are owned by company insiders. Comparatively, 58.8% of RPC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

RPC beats WBI on 8 of the 15 factors compared between the two stocks.

About WBI

WaterBridge Infrastructure LLC is an integrated, pure-play water infrastructure company. WaterBridge Infrastructure LLC is based in HOUSTON.

About RPC

RPC, Inc., through its subsidiaries, engages provision of a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services segment offers pressure pumping, fracturing, acidizing, cementing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services, as well as well control training and consulting services. It operates in the United States, Africa, Canada, Argentina, China, Mexico, Latin America, the Middle East, and internationally. The company was incorporated in 1984 and is headquartered in Atlanta, Georgia.