Oceaneering International (NYSE:OII) and National Energy Services Reunited (NASDAQ:NESR) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Earnings and Valuation
This table compares Oceaneering International and National Energy Services Reunited's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Oceaneering International | $2.05 billion | 0.57 | $-348,440,000.00 | ($0.82) | -14.39 |
| National Energy Services Reunited | $658.39 million | 1.75 | $39.36 million | $0.74 | 17.91 |
National Energy Services Reunited has lower revenue, but higher earnings than Oceaneering International. Oceaneering International is trading at a lower price-to-earnings ratio than National Energy Services Reunited, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
83.4% of Oceaneering International shares are held by institutional investors. Comparatively, 28.1% of National Energy Services Reunited shares are held by institutional investors. 1.8% of Oceaneering International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Oceaneering International and National Energy Services Reunited's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Oceaneering International | -37.40% | -3.56% | -1.14% |
| National Energy Services Reunited | 4.63% | 6.46% | 3.66% |
Analyst Recommendations
This is a summary of recent recommendations for Oceaneering International and National Energy Services Reunited, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Oceaneering International | 0 | 9 | 1 | 0 | 2.10 |
| National Energy Services Reunited | 0 | 0 | 1 | 0 | 3.00 |
Oceaneering International presently has a consensus price target of $6.8286, indicating a potential downside of 42.13%. National Energy Services Reunited has a consensus price target of $17.50, indicating a potential upside of 32.08%. Given National Energy Services Reunited's stronger consensus rating and higher probable upside, analysts plainly believe National Energy Services Reunited is more favorable than Oceaneering International.
Volatility & Risk
Oceaneering International has a beta of 3.6, indicating that its stock price is 260% more volatile than the S&P 500. Comparatively, National Energy Services Reunited has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
Summary
National Energy Services Reunited beats Oceaneering International on 9 of the 13 factors compared between the two stocks.
