RPC (NYSE:RES) and Oceaneering International (NYSE:OII) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.
Analyst Recommendations
This is a summary of current ratings and recommmendations for RPC and Oceaneering International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
RPC | 3 | 3 | 1 | 0 | 1.71 |
Oceaneering International | 0 | 9 | 1 | 0 | 2.10 |
RPC currently has a consensus target price of $3.1313, suggesting a potential downside of 17.81%. Oceaneering International has a consensus target price of $6.8286, suggesting a potential downside of 29.75%. Given RPC's higher possible upside, equities research analysts clearly believe RPC is more favorable than Oceaneering International.
Profitability
This table compares RPC and Oceaneering International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
RPC | -32.86% | -9.35% | -7.44% |
Oceaneering International | -37.40% | -3.56% | -1.14% |
Volatility and Risk
RPC has a beta of 2.13, indicating that its share price is 113% 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.
Valuation and Earnings
This table compares RPC and Oceaneering International's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
RPC | $1.22 billion | 0.67 | $-87,110,000.00 | ($0.12) | -31.75 |
Oceaneering International | $2.05 billion | 0.47 | $-348,440,000.00 | ($0.82) | -11.85 |
RPC has higher earnings, but lower revenue than Oceaneering International. RPC is trading at a lower price-to-earnings ratio than Oceaneering International, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
25.7% of RPC shares are held by institutional investors. Comparatively, 83.4% of Oceaneering International shares are held by institutional investors. 73.6% of RPC 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Oceaneering International beats RPC on 7 of the 13 factors compared between the two stocks.