NexTier Oilfield Solutions (NYSE:NEX) and Oceaneering International (NYSE:OII) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for NexTier Oilfield Solutions and Oceaneering International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| NexTier Oilfield Solutions | 0 | 3 | 5 | 0 | 2.63 |
| Oceaneering International | 0 | 4 | 2 | 0 | 2.33 |
NexTier Oilfield Solutions currently has a consensus price target of $4.1875, suggesting a potential upside of 14.10%. Oceaneering International has a consensus price target of $11.2571, suggesting a potential upside of 7.31%. Given NexTier Oilfield Solutions' stronger consensus rating and higher possible upside, research analysts plainly believe NexTier Oilfield Solutions is more favorable than Oceaneering International.
Insider & Institutional Ownership
85.9% of NexTier Oilfield Solutions shares are held by institutional investors. Comparatively, 83.4% of Oceaneering International shares are held by institutional investors. 2.9% of NexTier Oilfield Solutions shares are held by company insiders. Comparatively, 1.8% of Oceaneering International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares NexTier Oilfield Solutions and Oceaneering International's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| NexTier Oilfield Solutions | $1.82 billion | 0.43 | $-106,160,000.00 | ($0.23) | -15.96 |
| Oceaneering International | $2.05 billion | 0.51 | $-348,440,000.00 | ($0.82) | -12.79 |
NexTier Oilfield Solutions has higher earnings, but lower revenue than Oceaneering International. NexTier Oilfield Solutions is trading at a lower price-to-earnings ratio than Oceaneering International, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
NexTier Oilfield Solutions has a beta of 3.52, indicating that its share price is 252% more volatile than the S&P 500. Comparatively, Oceaneering International has a beta of 3.6, indicating that its share price is 260% more volatile than the S&P 500.
Profitability
This table compares NexTier Oilfield Solutions and Oceaneering International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| NexTier Oilfield Solutions | -24.38% | -27.11% | -13.75% |
| Oceaneering International | -37.40% | -3.56% | -1.14% |
Summary
NexTier Oilfield Solutions beats Oceaneering International on 8 of the 14 factors compared between the two stocks.
