Critical Comparison: DMC Global (NASDAQ:BOOM) vs. WBI (NYSE:WBI)

WBI (NYSE:WBI) and DMC Global (NASDAQ:BOOM) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Earnings & Valuation

This table compares WBI and DMC Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WBI	$525.55 million	7.78	$11.89 million	$0.08	413.76
DMC Global	$609.84 million	0.23	-$13.45 million	($0.93)	-7.23

WBI has higher earnings, but lower revenue than DMC Global. DMC Global is trading at a lower price-to-earnings ratio than WBI, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares WBI and DMC Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WBI	0.54%	0.85%	0.41%
DMC Global	-3.37%	-6.84%	-2.57%

Institutional and Insider Ownership

77.6% of DMC Global shares are held by institutional investors. 50.6% of WBI shares are held by company insiders. Comparatively, 7.1% of DMC Global shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for WBI and DMC Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WBI	0	2	4	1	2.86
DMC Global	1	2	1	0	2.00

WBI presently has a consensus price target of $36.71, indicating a potential upside of 10.92%. DMC Global has a consensus price target of $9.00, indicating a potential upside of 33.93%. Given DMC Global’s higher possible upside, analysts clearly believe DMC Global is more favorable than WBI.

Summary

WBI beats DMC Global on 11 of the 14 factors compared between the two stocks.

About WBI

WaterBridge Infrastructure LLC is an integrated, pure-play water infrastructure company. WaterBridge Infrastructure LLC is based in HOUSTON.

About DMC Global

DMC Global Inc. provides a suite of engineered products and various solutions for the construction, energy, industrial processing, and transportation markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions; architectural components, architectural framing systems, entrance systems, and sun control products; sliding and glazing systems; and thermally broken steel, aluminum windows and doors, and wood doors and windows. It sells its products through a national in-house sales force for buildings, such as office towers, airports, hotels, education and athletic facilities, health care locations, government buildings, retail centers, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and perforating systems and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, rail car manufacturing, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.