Nine Energy Service (NYSE:NINE) and Victory Oilfield Tech (OTCMKTS:VYEY) Critical Analysis

Nine Energy Service (NYSE:NINE) and Victory Oilfield Tech (OTCMKTS:VYEY) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Profitability

This table compares Nine Energy Service and Victory Oilfield Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nine Energy Service	-6.31%	N/A	-10.17%
Victory Oilfield Tech	N/A	N/A	N/A

Earnings & Valuation

This table compares Nine Energy Service and Victory Oilfield Tech”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nine Energy Service	$571.17 million	0.03	-$41.08 million	($1.00)	-0.41
Victory Oilfield Tech	N/A	N/A	-$540,000.00	N/A	N/A

Victory Oilfield Tech has lower revenue, but higher earnings than Nine Energy Service.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nine Energy Service and Victory Oilfield Tech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nine Energy Service	1	0	0	0	1.00
Victory Oilfield Tech	0	0	0	0	0.00

Given Victory Oilfield Tech’s higher probable upside, analysts clearly believe Victory Oilfield Tech is more favorable than Nine Energy Service.

Volatility & Risk

Nine Energy Service has a beta of 2.83, suggesting that its stock price is 183% more volatile than the S&P 500. Comparatively, Victory Oilfield Tech has a beta of -0.07, suggesting that its stock price is 107% less volatile than the S&P 500.

Insider & Institutional Ownership

57.6% of Nine Energy Service shares are owned by institutional investors. 4.1% of Nine Energy Service shares are owned by insiders. Comparatively, 97.6% of Victory Oilfield Tech shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Victory Oilfield Tech beats Nine Energy Service on 5 of the 9 factors compared between the two stocks.

About Nine Energy Service

Nine Energy Service, Inc. operates as an onshore completion services provider that targets unconventional oil and gas resource development in North American basins and internationally. It offers cementing services, including blending high-grade cement and water with various solid and liquid additives to create a cement slurry that is pumped between the casing and the wellbore of the well. The company also provides open hole and cemented completion tool products, such as liner hangers and accessories, fracture isolation packers, frac sleeves, stage one prep tools, casing flotation tools, specialty open hole float equipment, disk subs, composite cement retainers, and centralizers that provide pinpoint frac sleeve system technologies. In addition, it offers wireline services consisting of plug-and-perf completions, which is a multistage well completion technique for cased-hole wells that consists of deploying perforating guns and isolation tools to a specified depth; and coiled tubing services, which perform wellbore intervention operations utilizing a continuous steel pipe that is transported to the wellsite wound on a large spool. The company was formerly known as NSC-Tripoint, Inc. and changed its name to Nine Energy Service, Inc. in October 2011. Nine Energy Service, Inc. was incorporated in 2011 and is headquartered in Houston, Texas.

About Victory Oilfield Tech

Victory Oilfield Tech, Inc. operates as an oilfield energy technology products company in the United States. The company offers patented oil and gas drilling products. It also provides various hardbanding solutions to the oilfield operators for drill and weight pipes, tubing, and drill collars, as well as grinding services. The company was formerly known as Victory Energy Corporation and changed its name to Victory Oilfield Tech, Inc. in May 2018. Victory Oilfield Tech, Inc. was incorporated in 1982 and is based in Austin, Texas.