Oceaneering International (NYSE:OII) and Nine Energy Service (NYSE:NINE) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for Oceaneering International and Nine Energy Service, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Oceaneering International | 0 | 9 | 2 | 0 | 2.18 |
| Nine Energy Service | 1 | 8 | 0 | 0 | 1.89 |
Oceaneering International presently has a consensus target price of $8.9750, suggesting a potential downside of 28.37%. Nine Energy Service has a consensus target price of $3.00, suggesting a potential downside of 10.98%. Given Nine Energy Service's higher possible upside, analysts clearly believe Nine Energy Service is more favorable than Oceaneering International.
Risk and Volatility
Oceaneering International has a beta of 3.6, suggesting that its stock price is 260% more volatile than the S&P 500. Comparatively, Nine Energy Service has a beta of 3.74, suggesting that its stock price is 274% more volatile than the S&P 500.
Profitability
This table compares Oceaneering International and Nine Energy Service'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% |
| Nine Energy Service | -136.82% | -65.52% | -17.29% |
Earnings and Valuation
This table compares Oceaneering International and Nine Energy Service's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Oceaneering International | $2.05 billion | 0.61 | $-348,440,000.00 | ($0.82) | -15.28 |
| Nine Energy Service | $832.94 million | 0.13 | $-217,750,000.00 | $0.32 | 10.53 |
Nine Energy Service has lower revenue, but higher earnings than Oceaneering International. Oceaneering International is trading at a lower price-to-earnings ratio than Nine Energy Service, 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, 50.4% of Nine Energy Service shares are held by institutional investors. 1.8% of Oceaneering International shares are held by company insiders. Comparatively, 3.6% of Nine Energy Service 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.
Summary
Oceaneering International beats Nine Energy Service on 8 of the 14 factors compared between the two stocks.
