Financial Review: Recon Technology (NASDAQ:RCON) versus US Well Services (NASDAQ:USWS)

Recon Technology (NASDAQ:RCON) and US Well Services (NASDAQ:USWS) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Earnings & Valuation

This table compares Recon Technology and US Well Services’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Recon Technology $14.91 million 1.20 -$3.69 million N/A N/A
US Well Services $648.85 million 0.15 -$65.90 million ($1.33) -1.05

Recon Technology has higher earnings, but lower revenue than US Well Services.

Insider & Institutional Ownership

0.0% of Recon Technology shares are owned by institutional investors. Comparatively, 46.1% of US Well Services shares are owned by institutional investors. 28.0% of Recon Technology shares are owned by company insiders. Comparatively, 10.9% of US Well Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Recon Technology and US Well Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Recon Technology N/A N/A N/A
US Well Services -19.99% -40.96% -14.45%

Analyst Recommendations

This is a breakdown of recent recommendations for Recon Technology and US Well Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Recon Technology 0 1 0 0 2.00
US Well Services 0 0 3 0 3.00

Recon Technology currently has a consensus target price of $2.00, indicating a potential upside of 157.23%. US Well Services has a consensus target price of $8.97, indicating a potential upside of 545.08%. Given US Well Services’ stronger consensus rating and higher probable upside, analysts clearly believe US Well Services is more favorable than Recon Technology.

Summary

Recon Technology beats US Well Services on 6 of the 11 factors compared between the two stocks.

Recon Technology Company Profile

Recon Technology, Ltd. provides hardware, software, and on-site services to companies in the petroleum mining and extraction industry in the People's Republic of China. The company offers equipment, tools, and other hardware related to oilfield production and management, and transportation; and develops and sells industrial automation control and information solutions. It also provides oil and gas production enhancing techniques comprising packers of fracturing; production packers; sand prevention in oil and water wells; water locating and plugging techniques; fissure shaper; fracture acidizing technique; and electronic broken-down service to resolve block-up and freezing problems. In addition, the company offers automation systems and services, including pumping unit controller that monitors the pumping units and collects data; RTU to monitor natural gas wells and collect gas well pressure data; wireless dynamometers and wireless pressure gauges; electric multi-way valves for oilfield metering station flow control; and natural gas flow computer systems. Further, it provides Recon SCADA oilfield monitor and data acquisition system for supervision and data collection; EPC service of pipeline SCADA system for pipeline monitoring and data acquisition; EPC service of oil and gas wells SCADA system for monitoring and data acquisition of oil wells and natural gas wells; EPC service of oilfield video surveillance and control system to control the oil and gas wellhead and measurement station areas; and technique service for digital oilfield transformation. Additionally, the company offers oilfield waste water treatment solutions and related chemicals; and oily sludge disposal solutions. Recon Technology, Ltd. was incorporated in 2007 and is headquartered in Beijing, the People's Republic of China.

US Well Services Company Profile

U.S. Well Services, Inc. operates as an oilfield service company in the United States. It provides hydraulic fracturing services for the oil and natural gas exploration and production companies. The company is headquartered in Houston, Texas.

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