Natural Gas Services Group (NYSE:NGS) and Gulf Island Fabrication (NASDAQ:GIFI) Head to Head Review

Gulf Island Fabrication (NASDAQ:GIFI) and Natural Gas Services Group (NYSE:NGS) are both small-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

46.4% of Gulf Island Fabrication shares are held by institutional investors. Comparatively, 65.6% of Natural Gas Services Group shares are held by institutional investors. 20.1% of Gulf Island Fabrication shares are held by insiders. Comparatively, 7.3% of Natural Gas Services Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Gulf Island Fabrication has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Natural Gas Services Group has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Profitability

This table compares Gulf Island Fabrication and Natural Gas Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gulf Island Fabrication	7.87%	13.50%	9.21%
Natural Gas Services Group	10.53%	6.99%	3.57%

Analyst Recommendations

This is a breakdown of recent recommendations for Gulf Island Fabrication and Natural Gas Services Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gulf Island Fabrication	0	0	0	0	0.00
Natural Gas Services Group	0	0	1	1	3.50

Natural Gas Services Group has a consensus target price of $32.50, suggesting a potential upside of 22.94%. Given Natural Gas Services Group’s stronger consensus rating and higher possible upside, analysts clearly believe Natural Gas Services Group is more favorable than Gulf Island Fabrication.

Earnings and Valuation

This table compares Gulf Island Fabrication and Natural Gas Services Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gulf Island Fabrication	$159.20 million	0.70	$14.74 million	$0.74	9.32
Natural Gas Services Group	$156.74 million	2.11	$17.23 million	$1.35	19.58

Natural Gas Services Group has lower revenue, but higher earnings than Gulf Island Fabrication. Gulf Island Fabrication 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.

Summary

Natural Gas Services Group beats Gulf Island Fabrication on 11 of the 15 factors compared between the two stocks.

About Gulf Island Fabrication

Gulf Island Fabrication, Inc., together with its subsidiaries, operates as a fabricator of steel structures and modules in the United States. It operates through Services, Fabrication, and Shipyard divisions. The company provides maintenance, repair, construction, scaffolding, coatings, welding enclosures, and other specialty services on offshore platforms, inland structures, and industrial facilities; services required to connect production equipment and service modules, and equipment on offshore platforms; project management and commissioning services; hookup services; and civil construction and staffing services to the industrial and energy sectors, as well as undertakes municipal and drainage projects, including pump stations, levee reinforcement, bulkheads, and other public works. It also fabricates modules, skids, and piping systems for onshore refining, petrochemical, liquified natural gas (LNG), industrial, and offshore facilities; foundations, secondary steel components, and support structures for alternative energy developments and coastal mooring facilities; offshore production platforms and associated structures, including jacket foundations, piles, and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; and other complex steel structures and components. In addition, the company fabricates newbuild marine vessels and provides marine repair and maintenance services. The company serves international energy producers; refining, petrochemical, LNG, industrial, and power operators; and engineering, procurement, and construction companies. Gulf Island Fabrication, Inc. was incorporated in 1985 and is headquartered in The Woodlands, Texas.

About Natural Gas Services Group

Natural Gas Services Group, Inc. provides natural gas compression equipment and services to the energy industry in the United States. It engineers and fabricates, operates, rents, and maintains natural gas compressors for oil and natural gas production and plant facilities. It also designs, fabricates, and assembles compressor units for rental or sale; and designs, manufactures, and sells a line of reciprocating natural gas compressor frames, cylinders, and parts. In addition, the company offers 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, it provides aftermarket services for its compressor and flare sales business; and exchange and rebuild program for small horsepower screw compressors. It markets its products to exploration and production companies that utilize compressor units for artificial lift applications; and oil and natural gas exploration and production companies. Natural Gas Services Group, Inc. was incorporated in 1998 and is headquartered in Midland, Texas.