Flotek Industries (NYSE: FTK) and Superior Energy Services (NYSE:SPN) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
This table compares Flotek Industries and Superior Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Superior Energy Services||-31.24%||-28.82%||-10.86%|
Risk & Volatility
Flotek Industries has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Superior Energy Services has a beta of 2.14, suggesting that its share price is 114% more volatile than the S&P 500.
Insider & Institutional Ownership
97.4% of Flotek Industries shares are owned by institutional investors. 5.5% of Flotek Industries shares are owned by insiders. Comparatively, 2.9% of Superior Energy Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Flotek Industries and Superior Energy Services’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Flotek Industries||$300.07 million||0.95||$2.51 million||($0.56)||-8.87|
|Superior Energy Services||$1.55 billion||1.00||-$16.52 million||($3.20)||-3.18|
Flotek Industries has higher revenue, but lower earnings than Superior Energy Services. Flotek Industries is trading at a lower price-to-earnings ratio than Superior Energy Services, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Flotek Industries and Superior Energy Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Superior Energy Services||0||13||8||0||2.38|
Superior Energy Services has a consensus target price of $16.11, suggesting a potential upside of 58.42%. Given Superior Energy Services’ higher possible upside, analysts clearly believe Superior Energy Services is more favorable than Flotek Industries.
Flotek Industries beats Superior Energy Services on 8 of the 13 factors compared between the two stocks.
About Flotek Industries
Flotek Industries, Inc. is a technology-driven company. The Company develops and supplies chemistry and services to the oil and gas industries, and compounds to companies that make cleaning products, cosmetics, food and beverages, and other products that are sold in consumer and industrial markets. The Company operates through two segments: Energy Chemistry Technologies (ECT), and Consumer and Industrial Chemistry Technologies (CICT). The ECT segment designs, develops, manufactures, packages and markets chemistries for use in oil and gas well drilling, cementing, completion and stimulation activities. Its ECT segment’s services include Reservoir Characterization, Polymer Conformance and Logistics Management. The CICT segment sources citrus oil domestically and internationally, and processor of citrus oils in the world. The CICT segment designs, develops and manufactures products that are sold to companies in the flavor and fragrance industries and specialty chemical industry.
About Superior Energy Services
Superior Energy Services, Inc. provides a range of services and products to the energy industry related to the exploration, development and production of oil and natural gas. The Company’s segments include Drilling Products and Services, which rents and sells bottom hole assemblies, drill pipe, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, production and workover activities; Onshore Completion and Workover Services, which provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well servicing rigs that provide a range of well completion and maintenance services; Production Services, which provides intervention services, such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, and remedial pumping services, and Technical Solutions, which provides services requiring specialized engineering, manufacturing or project planning.
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