Cypress Energy Partners (NYSE:CELP) and Natural Gas Services Group (NYSE:NGS) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.
Volatility & Risk
Cypress Energy Partners has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Natural Gas Services Group has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Cypress Energy Partners pays an annual dividend of $0.84 per share and has a dividend yield of 11.6%. Natural Gas Services Group does not pay a dividend. Cypress Energy Partners pays out 116.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation & Earnings
This table compares Cypress Energy Partners and Natural Gas Services Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cypress Energy Partners||$314.96 million||0.28||$11.41 million||$0.72||10.04|
|Natural Gas Services Group||$65.48 million||3.13||$430,000.00||$0.08||193.50|
Cypress Energy Partners has higher revenue and earnings than Natural Gas Services Group. Cypress Energy Partners is trading at a lower price-to-earnings ratio than Natural Gas Services Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Cypress Energy Partners and Natural Gas Services Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cypress Energy Partners||0||1||0||0||2.00|
|Natural Gas Services Group||0||0||3||0||3.00|
Cypress Energy Partners presently has a consensus price target of $8.00, indicating a potential upside of 10.65%. Natural Gas Services Group has a consensus price target of $54.00, indicating a potential upside of 248.84%. Given Natural Gas Services Group’s stronger consensus rating and higher possible upside, analysts plainly believe Natural Gas Services Group is more favorable than Cypress Energy Partners.
This table compares Cypress Energy Partners and Natural Gas Services Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cypress Energy Partners||3.61%||129.42%||7.90%|
|Natural Gas Services Group||0.81%||0.46%||0.40%|
Institutional & Insider Ownership
1.3% of Cypress Energy Partners shares are held by institutional investors. Comparatively, 89.8% of Natural Gas Services Group shares are held by institutional investors. 6.6% of Natural Gas Services Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Cypress Energy Partners Company Profile
Cypress Energy Partners, L.P. provides pipeline inspection and integrity, and water and environmental services in North America. The company operates in three segments: Pipeline Inspection Services, Pipeline & Process Services, and Water and Environmental Services. The Pipeline Inspection Services segment offers independent inspection services for various facilities and equipment, such as transmission pipelines; oil and natural gas gathering systems; pump, compressor, measurement, and regulation stations; storage facilities and terminals; and gas distribution systems. The Pipeline & Process Services segment offers hydrostatic testing services, including filling, pressure testing, and dewatering; chemical cleaning services; and other related services. The Water and Environmental Services segment owns and operates nine Environmental Protection Agency Class II saltwater disposal (SWD) facilities in the Williston Basin region of North Dakota. This segment also offers flowback water management services by disposing flowback water produced from hydraulic fracturing operations during the completion of oil and natural gas wells; provides water management services by disposing naturally occurring water that is extracted during the oil and natural gas production process; separates residual oil from the saltwater stream and sells it to third-parties; and manages SWD facilities. The company serves oil and natural gas producers, pipeline owners and operators, public utility or local distribution companies, trucking companies, and third-party purchasers of residual oil. Cypress Energy Partners GP, LLC operates as the general partner of the company. The company was founded in 2012 and is headquartered in Tulsa, Oklahoma.
Natural Gas Services Group Company Profile
Natural Gas Services Group, Inc. provides small to medium horsepower compression equipment to the natural gas industry in the United States. The company engages in the rental of small to medium horsepower compression equipment to non-conventional natural gas and oil production businesses. As of December 31, 2018, it had 2,572 natural gas compressors in its rental fleet totaling 398,765 horsepower. The company also assembles compressor components into compressor units for rent or sale; engineers and fabricates natural gas compressors; and designs and manufactures a line of reciprocating compressor frames, cylinders, and parts. In addition, it is involved in the design, fabrication, sale, installation, and service of flare stacks and related ignition and control devices for the onshore and offshore incineration of gas compounds, such as hydrogen sulfide, carbon dioxide, natural gas, and liquefied petroleum gases. Further, the company offers customer support services for its compressor and flare sales business; exchanges and rebuilds program for screw compressors; and maintains an inventory of new and used compressors. Natural Gas Services Group, Inc. was founded in 1998 and is headquartered in Midland, Texas.
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