Eco-Stim Energy Solutions (OTCMKTS:ESES) and Schlumberger (NYSE:SLB) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
Valuation and Earnings
This table compares Eco-Stim Energy Solutions and Schlumberger's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Eco-Stim Energy Solutions | $40.71 million | 0.00 | $-87,870,000.00 | N/A | N/A |
Schlumberger | $32.92 billion | 1.13 | $-10,137,000,000.00 | $1.47 | 18.05 |
Eco-Stim Energy Solutions has higher earnings, but lower revenue than Schlumberger.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Eco-Stim Energy Solutions and Schlumberger, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Eco-Stim Energy Solutions | 0 | 0 | 0 | 0 | N/A |
Schlumberger | 2 | 6 | 13 | 0 | 2.52 |
Schlumberger has a consensus price target of $24.68, indicating a potential downside of 6.97%. Given Schlumberger's higher possible upside, analysts clearly believe Schlumberger is more favorable than Eco-Stim Energy Solutions.
Profitability
This table compares Eco-Stim Energy Solutions and Schlumberger's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Eco-Stim Energy Solutions | N/A | N/A | N/A |
Schlumberger | -40.15% | 7.34% | 2.46% |
Institutional and Insider Ownership
73.2% of Schlumberger shares are owned by institutional investors. 4.7% of Eco-Stim Energy Solutions shares are owned by company insiders. Comparatively, 0.6% of Schlumberger shares are owned by company 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.
Risk and Volatility
Eco-Stim Energy Solutions has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500. Comparatively, Schlumberger has a beta of 2.28, suggesting that its stock price is 128% more volatile than the S&P 500.
Summary
Schlumberger beats Eco-Stim Energy Solutions on 8 of the 11 factors compared between the two stocks.