Critical Review: Eco-Stim Energy Solutions (ESES) vs. Liberty Oilfield Services (LBRT)

Eco-Stim Energy Solutions (NASDAQ: ESES) and Liberty Oilfield Services (NYSE:LBRT) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares Eco-Stim Energy Solutions and Liberty Oilfield Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eco-Stim Energy Solutions -61.22% -35.19% -22.07%
Liberty Oilfield Services N/A N/A N/A

Earnings & Valuation

This table compares Eco-Stim Energy Solutions and Liberty Oilfield Services’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eco-Stim Energy Solutions $44.02 million 1.53 -$26.94 million ($0.26) -3.46
Liberty Oilfield Services $1.49 billion 1.67 $168.50 million $0.88 23.90

Liberty Oilfield Services has higher revenue and earnings than Eco-Stim Energy Solutions. Eco-Stim Energy Solutions is trading at a lower price-to-earnings ratio than Liberty Oilfield Services, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Eco-Stim Energy Solutions and Liberty Oilfield Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eco-Stim Energy Solutions 0 1 4 0 2.80
Liberty Oilfield Services 0 1 8 0 2.89

Eco-Stim Energy Solutions currently has a consensus target price of $2.36, suggesting a potential upside of 162.22%. Liberty Oilfield Services has a consensus target price of $28.71, suggesting a potential upside of 36.54%. Given Eco-Stim Energy Solutions’ higher probable upside, equities research analysts plainly believe Eco-Stim Energy Solutions is more favorable than Liberty Oilfield Services.

Institutional & Insider Ownership

86.0% of Eco-Stim Energy Solutions shares are held by institutional investors. Comparatively, 3.2% of Liberty Oilfield Services shares are held by institutional investors. 11.1% of Eco-Stim Energy Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Liberty Oilfield Services beats Eco-Stim Energy Solutions on 9 of the 12 factors compared between the two stocks.

About Eco-Stim Energy Solutions

Eco-Stim Energy Solutions, Inc. provides oilfield services in the United States and Argentina. The company offers pressure pumping, coiled tubing, and field management services to the upstream oil and gas industry. Its customers consist primarily of international oil and gas exploration and production companies, including national oil companies, local privately-held exploration and production companies, and other service companies. The company is headquartered in Houston, Texas.

About Liberty Oilfield Services

Liberty Oilfield Services Inc. provides hydraulic fracturing services to onshore oil and natural gas exploration and production companies in North America. It has 19 active fleets. The company provides its services primarily in the Permian Basin, the Eagle Ford Shale, the Denver-Julesburg Basin, the Williston Basin, and the Powder River Basin. Liberty Oilfield Services Inc. was founded in 2011 and is headquartered in Denver, Colorado.

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