Oceaneering International (NYSE:OII) vs. Drilling Tools International (NASDAQ:DTI) Financial Contrast

Oceaneering International (NYSE:OII) and Drilling Tools International (NASDAQ:DTI) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Institutional and Insider Ownership

93.9% of Oceaneering International shares are owned by institutional investors. Comparatively, 2.8% of Drilling Tools International shares are owned by institutional investors. 1.3% of Oceaneering International shares are owned by company insiders. Comparatively, 17.1% of Drilling Tools 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Oceaneering International and Drilling Tools International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oceaneering International	0	3	1	1	2.60
Drilling Tools International	1	2	0	0	1.67

Oceaneering International presently has a consensus price target of $45.00, suggesting a potential upside of 23.17%. Drilling Tools International has a consensus price target of $2.80, suggesting a potential upside of 64.71%. Given Drilling Tools International’s higher probable upside, analysts plainly believe Drilling Tools International is more favorable than Oceaneering International.

Volatility and Risk

Oceaneering International has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Drilling Tools International has a beta of -0.61, suggesting that its stock price is 161% less volatile than the S&P 500.

Valuation & Earnings

This table compares Oceaneering International and Drilling Tools International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oceaneering International	$2.78 billion	1.31	$353.76 million	$3.48	10.50
Drilling Tools International	$159.63 million	0.38	-$3.76 million	($0.09)	-18.89

Oceaneering International has higher revenue and earnings than Drilling Tools International. Drilling Tools International is trading at a lower price-to-earnings ratio than Oceaneering International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Oceaneering International and Drilling Tools International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oceaneering International	11.37%	17.27%	7.25%
Drilling Tools International	-1.97%	0.58%	0.31%

Summary

Oceaneering International beats Drilling Tools International on 12 of the 15 factors compared between the two stocks.

About Oceaneering International

Oceaneering International, Inc. provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. It operates through Subsea Robotics, Manufactured Products, Offshore Projects Group, Integrity Management & Digital Solutions, and Aerospace and Defense Technologies segments. The company offers remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair; ROV tooling; and survey services, such as hydrographic survey, positioning services, and autonomous underwater vehicles for geoscience. It also provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robotic technology and entertainment systems to various industries. In addition, the company offers subsea installation and intervention, including riserless light well intervention inspection, maintenance, and repair services; installation and workover control systems, and ROV workover control systems; diving services; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions. Further, it provides asset integrity management, software and analytical solutions for the bulk cargo maritime industry, and software, digital, and connectivity solutions for the energy industry, as well as government services and products, including engineering and related manufacturing in defense and space exploration activities to the United States' government agencies and their prime contractors. Oceaneering International, Inc. was founded in 1964 and is headquartered in Houston, Texas.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.