Oceaneering International (NYSE:OII) and Forum Energy Technologies (NYSE:FET) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
88.4% of Oceaneering International shares are owned by institutional investors. Comparatively, 42.7% of Forum Energy Technologies shares are owned by institutional investors. 2.1% of Oceaneering International shares are owned by company insiders. Comparatively, 8.7% of Forum Energy Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and price targets for Oceaneering International and Forum Energy Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Oceaneering International | 0 | 3 | 2 | 0 | 2.40 |
| Forum Energy Technologies | 0 | 1 | 0 | 0 | 2.00 |
Oceaneering International presently has a consensus target price of $12.6857, suggesting a potential downside of 24.85%. Forum Energy Technologies has a consensus target price of $8.00, suggesting a potential downside of 67.52%. Given Oceaneering International's stronger consensus rating and higher probable upside, analysts clearly believe Oceaneering International is more favorable than Forum Energy Technologies.
Risk and Volatility
Oceaneering International has a beta of 3.55, indicating that its share price is 255% more volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 4.27, indicating that its share price is 327% more volatile than the S&P 500.
Profitability
This table compares Oceaneering International and Forum Energy Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Oceaneering International | -8.01% | -4.76% | -1.33% |
| Forum Energy Technologies | -20.14% | -27.85% | -12.38% |
Valuation and Earnings
This table compares Oceaneering International and Forum Energy Technologies' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Oceaneering International | $1.83 billion | 0.92 | $-496,750,000.00 | ($0.27) | -62.59 |
| Forum Energy Technologies | $512.50 million | 0.27 | $-96,890,000.00 | ($20.91) | -1.18 |
Forum Energy Technologies has lower revenue, but higher earnings than Oceaneering International. Oceaneering International is trading at a lower price-to-earnings ratio than Forum Energy Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Oceaneering International beats Forum Energy Technologies on 10 of the 14 factors compared between the two stocks.
