US Well Services (NASDAQ:USWS) and Key Energy Services (NYSE:KEG) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
This table compares US Well Services and Key Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|US Well Services||-50.10%||-67.12%||-14.51%|
|Key Energy Services||-20.26%||-2,602.22%||-23.27%|
US Well Services has a beta of 2.71, meaning that its share price is 171% more volatile than the S&P 500. Comparatively, Key Energy Services has a beta of 4.35, meaning that its share price is 335% more volatile than the S&P 500.
Earnings and Valuation
This table compares US Well Services and Key Energy Services’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|US Well Services||$514.76 million||0.07||-$93.91 million||($1.72)||-0.29|
|Key Energy Services||$521.70 million||0.00||-$88.80 million||($4.53)||N/A|
Key Energy Services has higher revenue and earnings than US Well Services. US Well Services is trading at a lower price-to-earnings ratio than Key Energy Services, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
60.9% of US Well Services shares are owned by institutional investors. Comparatively, 32.3% of Key Energy Services shares are owned by institutional investors. 10.5% of US Well Services shares are owned by company insiders. Comparatively, 1.6% of Key Energy Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings for US Well Services and Key Energy Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|US Well Services||0||2||0||0||2.00|
|Key Energy Services||0||1||1||0||2.50|
US Well Services presently has a consensus price target of $1.00, indicating a potential upside of 101.57%. Key Energy Services has a consensus price target of $3.00, indicating a potential upside of ∞. Given Key Energy Services’ stronger consensus rating and higher possible upside, analysts clearly believe Key Energy Services is more favorable than US Well Services.
Key Energy Services beats US Well Services on 8 of the 13 factors compared between the two stocks.
About US Well Services
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.
About Key Energy Services
Key Energy Services, Inc. operates as an onshore rig-based well servicing contractor in the United States. It operates through Rig Services, Fishing and Rental Services, Coiled Tubing Services, and Fluid Management Services segments. The Rig Services segment is involved in the completion of newly drilled wells; workover and recompletion of existing oil and natural gas wells; well maintenance activities; and plugging and abandonment of wells at the end of their useful lives, as well as provision of specialty drilling services to oil and natural gas producers. The Fishing and Rental Services segment provides fishing services that involve recovering lost or stuck equipment in the wellbore utilizing fishing tools; and rents drill pipes, tubulars, handling tools, pressure-control equipment, pumps, power swivels, reversing units, and foam air units. The Coiled Tubing Services segment offers services for wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations; mills temporary isolation plugs that separate frac zones; and other pre- and post-hydraulic fracturing well preparation services. The Fluid Management Services segment offers transportation and well-site storage services for fluids utilized in drilling, completions, workover, and maintenance activities; and disposal services for fluids produced subsequent to well completion. It also operates a fleet of hot oilers used to clear soluble restrictions in a wellbore. The company was formerly known as Key Energy Group, Inc. and changed its name to Key Energy Services, Inc. in December 1998. Key Energy Services, Inc. was founded in 1977 and is based in Houston, Texas.
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