NCS Multistage (NASDAQ:NCSM) and Oceaneering International (NYSE:OII) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
Profitability
This table compares NCS Multistage and Oceaneering International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
NCS Multistage | -51.90% | -13.76% | -10.52% |
Oceaneering International | -37.40% | -3.56% | -1.14% |
Earnings and Valuation
This table compares NCS Multistage and Oceaneering International's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
NCS Multistage | $205.49 million | 0.42 | $-32,820,000.00 | ($4.80) | -7.56 |
Oceaneering International | $2.05 billion | 0.62 | $-348,440,000.00 | ($0.82) | -15.65 |
NCS Multistage has higher earnings, but lower revenue than Oceaneering International. Oceaneering International is trading at a lower price-to-earnings ratio than NCS Multistage, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for NCS Multistage and Oceaneering International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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NCS Multistage | 1 | 2 | 1 | 0 | 2.00 |
Oceaneering International | 0 | 9 | 2 | 0 | 2.18 |
NCS Multistage currently has a consensus price target of $1.3833, suggesting a potential downside of 96.19%. Oceaneering International has a consensus price target of $7.9750, suggesting a potential downside of 37.84%. Given Oceaneering International's stronger consensus rating and higher possible upside, analysts clearly believe Oceaneering International is more favorable than NCS Multistage.
Institutional and Insider Ownership
83.4% of Oceaneering International shares are owned by institutional investors. 12.9% of NCS Multistage shares are owned by company insiders. Comparatively, 1.8% of Oceaneering International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
NCS Multistage has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, Oceaneering International has a beta of 3.6, indicating that its stock price is 260% more volatile than the S&P 500.
Summary
Oceaneering International beats NCS Multistage on 11 of the 14 factors compared between the two stocks.