Ranger Energy Services (NYSE:RNGR) and Oceaneering International (NYSE:OII) 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 analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Ranger Energy Services and Oceaneering International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Ranger Energy Services | 0 | 2 | 2 | 0 | 2.50 |
| Oceaneering International | 0 | 9 | 2 | 0 | 2.18 |
Ranger Energy Services presently has a consensus price target of $6.1667, suggesting a potential upside of 7.25%. Oceaneering International has a consensus price target of $8.9750, suggesting a potential downside of 28.37%. Given Ranger Energy Services' stronger consensus rating and higher probable upside, equities analysts clearly believe Ranger Energy Services is more favorable than Oceaneering International.
Volatility & Risk
Ranger Energy Services has a beta of 2.22, suggesting that its share price is 122% more volatile than the S&P 500. Comparatively, Oceaneering International has a beta of 3.6, suggesting that its share price is 260% more volatile than the S&P 500.
Profitability
This table compares Ranger Energy Services and Oceaneering International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Ranger Energy Services | -2.96% | -3.85% | -2.82% |
| Oceaneering International | -37.40% | -3.56% | -1.14% |
Valuation & Earnings
This table compares Ranger Energy Services and Oceaneering International's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Ranger Energy Services | $336.90 million | 0.26 | $1.80 million | $0.25 | 23.00 |
| Oceaneering International | $2.05 billion | 0.61 | $-348,440,000.00 | ($0.82) | -15.28 |
Ranger Energy Services has higher earnings, but lower revenue than Oceaneering International. Oceaneering International is trading at a lower price-to-earnings ratio than Ranger Energy Services, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
23.5% of Ranger Energy Services shares are held by institutional investors. Comparatively, 83.4% of Oceaneering International shares are held by institutional investors. 5.7% of Ranger Energy Services 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 stock will outperform the market over the long term.
Summary
Oceaneering International beats Ranger Energy Services on 7 of the 13 factors compared between the two stocks.
