CGG (NYSE: CGG) and Profire Energy (NASDAQ:PFIE) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitabiliy, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Earnings and Valuation

This table compares CGG and Profire Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CGG $1.13 billion 0.09 $358.80 million ($26.59) -0.18
Profire Energy $24.60 million 2.51 $2.27 million $0.01 123.12

CGG has higher revenue and earnings than Profire Energy. CGG is trading at a lower price-to-earnings ratio than Profire Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for CGG and Profire Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CGG 2 0 0 0 1.00
Profire Energy 0 0 1 0 3.00

Profire Energy has a consensus price target of $2.15, indicating a potential upside of 74.80%. Given Profire Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Profire Energy is more favorable than CGG.

Profitability

This table compares CGG and Profire Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CGG -51.98% -46.27% -11.90%
Profire Energy 2.85% 1.57% 1.51%

Insider and Institutional Ownership

0.9% of CGG shares are held by institutional investors. Comparatively, 19.9% of Profire Energy shares are held by institutional investors. 51.1% of Profire Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

CGG has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500. Comparatively, Profire Energy has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.

Summary

Profire Energy beats CGG on 10 of the 13 factors compared between the two stocks.

About CGG

CGG SA (CGG) is a manufacturer of geophysical equipment. The Company provides marine, land and airborne data acquisition services, as well as a range of other geoscience services, including data imaging, geoscience and petroleum engineering consulting services, and collecting, developing and licensing geological data. Its segments include Contractual Data Acquisition; Geology, Geophysics & Reservoir (GGR); Equipment, and Non-Operated Resources. The Contractual Data Acquisition includes marine, and land and multi-physics. Its GGR segment includes the Multi-client business line and the Subsurface Imaging and Reservoir business lines (processing and imaging of geophysical data, reservoir characterization, geophysical consulting and software services, geological data library and data management solutions). The Equipment segment consists of its manufacturing and sales activities for seismic equipment. It operates through Saturno, a multi-client survey over Santos Basin Offshore Brazil.

About Profire Energy

Profire Energy, Inc. is an oilfield technology company. The Company is primarily engaged in the business of developing combustion management technologies for the oil and gas industry. It specializes in the creation of burner-management systems, used on a range of oilfield natural-draft fire tube vessels. It offers burner-management systems, which help to ignite, monitor and manage the burner flame. Its solution, the PF3100, helps manage and synchronize custom applications helping oilfield producers meet deadlines through an off-the-shelf solution with dynamic customization. It also sells complementary oilfield products. Such products help manage fuel flow (such as valves and fuel trains), meter air flow (such as airplates), generate power on-site (such as solar packages), ignite and direct flame (such as flare stack igniter and nozzles), and other functions. In addition to the burner-management systems and complementary technologies, it also offers chemical-management systems.

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