Frank's International (NYSE:FI) and Oceaneering International (NYSE:OII) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Profitability
This table compares Frank's International and Oceaneering International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Frank's International | -72.93% | -10.38% | -8.48% |
| Oceaneering International | -37.40% | -3.56% | -1.14% |
Volatility and Risk
Frank's International has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Oceaneering International has a beta of 3.6, meaning that its share price is 260% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Frank's International and Oceaneering International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Frank's International | 0 | 1 | 0 | 0 | 2.00 |
| Oceaneering International | 0 | 3 | 2 | 0 | 2.40 |
Frank's International currently has a consensus target price of $4.50, indicating a potential upside of 18.73%. Oceaneering International has a consensus target price of $12.6857, indicating a potential downside of 16.76%. Given Frank's International's higher probable upside, equities analysts clearly believe Frank's International is more favorable than Oceaneering International.
Valuation and Earnings
This table compares Frank's International and Oceaneering International's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Frank's International | $579.92 million | 1.49 | $-235,330,000.00 | ($0.33) | -11.48 |
| Oceaneering International | $2.05 billion | 0.74 | $-348,440,000.00 | ($0.82) | -18.59 |
Frank's International has higher earnings, but lower revenue than Oceaneering International. Oceaneering International is trading at a lower price-to-earnings ratio than Frank's International, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
49.5% of Frank's International shares are owned by institutional investors. Comparatively, 83.4% of Oceaneering International shares are owned by institutional investors. 18.2% of Frank's International shares are owned by insiders. Comparatively, 1.8% of Oceaneering International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Oceaneering International beats Frank's International on 9 of the 14 factors compared between the two stocks.
