Core Laboratories (NYSE:CLB – Get Free Report) and Western Energy Services (OTCMKTS:WEEEF – Get Free Report) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Risk & Volatility
Core Laboratories has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Western Energy Services has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for Core Laboratories and Western Energy Services, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Core Laboratories | 0 | 2 | 0 | 0 | 2.00 |
Western Energy Services | 0 | 0 | 0 | 0 | 0.00 |
Valuation and Earnings
This table compares Core Laboratories and Western Energy Services”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Core Laboratories | $523.85 million | 0.94 | $31.40 million | $0.62 | 16.98 |
Western Energy Services | $162.82 million | 0.32 | -$5.22 million | ($0.12) | -12.92 |
Core Laboratories has higher revenue and earnings than Western Energy Services. Western Energy Services is trading at a lower price-to-earnings ratio than Core Laboratories, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Core Laboratories and Western Energy Services’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Core Laboratories | 5.73% | 14.15% | 6.18% |
Western Energy Services | -2.43% | -1.86% | -1.27% |
Institutional and Insider Ownership
97.8% of Core Laboratories shares are owned by institutional investors. 0.9% of Core Laboratories shares are owned by company insiders. Comparatively, 50.0% of Western Energy 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.
Summary
Core Laboratories beats Western Energy Services on 12 of the 13 factors compared between the two stocks.
About Core Laboratories
Core Laboratories Inc. provides reservoir description and production enhancement services and products to the oil and gas industry in the United States, and internationally. It operates through Reservoir Description and Production Enhancement segments. The Reservoir Description segment includes the characterization of petroleum reservoir rock and reservoir fluid samples to enhance production and improve recovery of crude oil and gas from its clients' reservoirs. It offers laboratory-based analytical and field services to characterize properties of crude oil and oil delivered products; and proprietary and joint industry studies, as well as services that support carbon capture, utilization and storage, geothermal projects, and the evaluation and appraisal of mining activities. The Production Enhancement segment provides services and products relating to reservoir well completions, perforations, stimulations, production, and well abandonment. It offers integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions to improve the effectiveness of enhanced oil recovery projects. The company markets and sells its products through a combination of sales representatives, technical seminars, trade shows, and print advertising, as well as through distributors. Core Laboratories Inc. was founded in 1936 and is based in Houston, Texas.
About Western Energy Services
Western Energy Services Corp. operates as an oilfield service company in Canada and the United States. It operates through Contract Drilling and Production Services segments. The Contract Drilling segment provides contract drilling services using drilling rigs and auxiliary equipment. The Production Services segment offers well servicing rig and related equipment, as well as rental equipment services. Western Energy Services Corp. is headquartered in Calgary, Canada.
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