Oceaneering International (NYSE:OII) and RigNet (NASDAQ:RNET) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.
Volatility and Risk
Oceaneering International has a beta of 3.6, indicating that its stock price is 260% more volatile than the S&P 500. Comparatively, RigNet has a beta of 2.55, indicating that its stock price is 155% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Oceaneering International and RigNet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Oceaneering International | 0 | 4 | 2 | 0 | 2.33 |
RigNet | 0 | 1 | 0 | 0 | 2.00 |
Oceaneering International currently has a consensus target price of $11.2571, suggesting a potential upside of 13.71%. Given Oceaneering International's stronger consensus rating and higher possible upside, research analysts clearly believe Oceaneering International is more favorable than RigNet.
Earnings & Valuation
This table compares Oceaneering International and RigNet's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Oceaneering International | $2.05 billion | 0.48 | $-348,440,000.00 | ($0.82) | -12.12 |
RigNet | $242.93 million | 0.75 | $-19,160,000.00 | N/A | N/A |
RigNet has lower revenue, but higher earnings than Oceaneering International.
Profitability
This table compares Oceaneering International and RigNet'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% |
RigNet | -16.51% | -200.81% | -18.67% |
Insider and Institutional Ownership
83.4% of Oceaneering International shares are owned by institutional investors. Comparatively, 71.3% of RigNet shares are owned by institutional investors. 1.8% of Oceaneering International shares are owned by insiders. Comparatively, 3.5% of RigNet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Oceaneering International beats RigNet on 9 of the 13 factors compared between the two stocks.