Comparing Oil States International (NYSE:OIS) and KLX Energy Services (NASDAQ:KLXE)

KLX Energy Services (NASDAQ:KLXE) and Oil States International (NYSE:OIS) are both small-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Valuation and Earnings

This table compares KLX Energy Services and Oil States International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KLX Energy Services	$636.60 million	0.05	-$77.10 million	($3.16)	-0.50
Oil States International	$645.67 million	0.84	-$109.38 million	($1.89)	-4.75

KLX Energy Services has higher earnings, but lower revenue than Oil States International. Oil States International is trading at a lower price-to-earnings ratio than KLX Energy Services, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for KLX Energy Services and Oil States International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KLX Energy Services	1	1	0	0	1.50
Oil States International	1	1	2	0	2.25

Oil States International has a consensus price target of $11.33, suggesting a potential upside of 26.16%. Given Oil States International’s stronger consensus rating and higher probable upside, analysts clearly believe Oil States International is more favorable than KLX Energy Services.

Institutional & Insider Ownership

42.7% of KLX Energy Services shares are owned by institutional investors. Comparatively, 97.4% of Oil States International shares are owned by institutional investors. 5.4% of KLX Energy Services shares are owned by company insiders. Comparatively, 7.6% of Oil States International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

KLX Energy Services has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Oil States International has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares KLX Energy Services and Oil States International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KLX Energy Services	-9.71%	N/A	-18.46%
Oil States International	-16.78%	4.28%	2.87%

Summary

Oil States International beats KLX Energy Services on 11 of the 14 factors compared between the two stocks.

About KLX Energy Services

KLX Energy Services Holdings, Inc. provides drilling, completions, production, and well intervention services and products to the onshore oil and gas producing regions of the United States. The company operates through three segments: Southwest, Rocky Mountains, and Northeast/Mid-Con. It provides directional drilling services; downhole navigational and rental tools businesses and support services, including well planning, site supervision, accommodation rentals, and other drilling rentals; and various technologies, including gamma ray, azimuthal gamma ray, real-time continuous inclination and azimuth, rotary steerable, pressure-while-drilling, mode shifting, stick-slip and destructive dynamics, dynamic sequencing and real-time shock, and vibration modules. The company also offers coiled tubing and nitrogen services; wireline services, including pump down perforating, logging, and pipe recover; pressure control products and services; wellhead and hydraulic fracturing rental products and services; flowback and testing services; thru-tubing technologies and services; rig assist snubbing services; cementing products and services; acidizing and pressure pumping services; and downhole completion tools, such as toe sleeves, wet shoe cementing bypass subs, composite plugs, dissolvable plugs, liner hangers, stage cementing tools, inflatables, float and casing equipment, and retrievable completion tools. In addition, it provides production services comprising maintenance-related intervention services; production blow out preventers; mechanical wireline services; slick line services; hydro-testing services; premium tubulars; and other specialized production tools. Further, the company provides intervention services consisting of technicians and equipment that are focused on providing customers engineered solutions to downhole complications. KLX Energy Services Holdings, Inc. was incorporated in 2018 and is headquartered in Houston, Texas.

About Oil States International

Oil States International, Inc., through its subsidiaries, provides engineered capital equipment and products for the energy, industrial, and military sectors worldwide. The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. It also provides wireline support, frac stacks, isolation tools, downhole and extended reach activity, well testing and flowback operations, sand control, and land drilling services. The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies. The Offshore/Manufactured Products segment designs, manufactures, and markets capital equipment utilized on floating production systems, subsea pipeline infrastructure, and offshore drilling rigs and vessels. Its products include flexible bearings, advanced connector systems, high-pressure riser systems, managed pressure drilling systems, deepwater mooring systems, cranes, subsea pipeline products, and blow-out preventer stack integration products. This segment also provides short-cycle products, such as valves, elastomers, and other specialty products that are used in the land-based drilling and completion markets; and other products for use in industrial, military, alternative energy, and other applications. In addition, it offers specialty welding, fabrication, cladding and machining, offshore installation, and inspection and repair services. The company was incorporated in 1995 and is headquartered in Houston, Texas.