Cactus (NYSE:WHD) vs. Smart Sand (NASDAQ:SND) Head to Head Review

Smart Sand (NASDAQ:SND) and Cactus (NYSE:WHD) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Profitability

This table compares Smart Sand and Cactus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smart Sand	2.71%	4.41%	3.07%
Cactus	6.69%	17.93%	11.01%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Smart Sand and Cactus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smart Sand	0	0	1	0	3.00
Cactus	0	3	3	0	2.50

Cactus has a consensus price target of $73.25, indicating a potential upside of 11.36%. Given Cactus’ higher possible upside, analysts clearly believe Cactus is more favorable than Smart Sand.

Volatility and Risk

Smart Sand has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Cactus has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Institutional & Insider Ownership

35.2% of Smart Sand shares are held by institutional investors. Comparatively, 85.1% of Cactus shares are held by institutional investors. 33.5% of Smart Sand shares are held by insiders. Comparatively, 12.9% of Cactus shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Smart Sand and Cactus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smart Sand	$330.15 million	0.62	$1.35 million	$0.26	18.62
Cactus	$1.08 billion	4.89	$166.01 million	$1.44	45.68

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

Summary

Cactus beats Smart Sand on 12 of the 14 factors compared between the two stocks.

About Smart Sand

Smart Sand, Inc., an integrated frac and industrial sand supply and services company, engages in the excavation, processing, and sale of sands or proppant for use in hydraulic fracturing operations in the oil and gas industry in the United States. It also provides proppant logistics services; and wellsite storage solutions through SmartSystems products and services. The company sells its products primarily to oil and natural gas exploration and production companies, oilfield service companies, and industrial manufacturers. Smart Sand, Inc. was incorporated in 2011 and is headquartered in Spring, Texas.

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.