SEACOR Holdings (NYSE:CKH) versus RigNet (RNET) Critical Survey
RigNet (NASDAQ: RNET) and SEACOR Holdings (NYSE:CKH) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitabiliy, earnings, analyst recommendations, institutional ownership and valuation.
Valuation and Earnings
This table compares RigNet and SEACOR Holdings’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RigNet||$206.35 million||1.54||$25.82 million||($0.68)||-25.96|
|SEACOR Holdings||$807.50 million||0.78||$74.80 million||($10.89)||-3.29|
SEACOR Holdings has higher revenue and earnings than RigNet. RigNet is trading at a lower price-to-earnings ratio than SEACOR Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares RigNet and SEACOR Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
RigNet has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, SEACOR Holdings has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
This is a summary of recent ratings and price targets for RigNet and SEACOR Holdings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
RigNet presently has a consensus target price of $20.50, suggesting a potential upside of 16.15%. SEACOR Holdings has a consensus target price of $37.00, suggesting a potential upside of 3.32%. Given RigNet’s higher probable upside, research analysts plainly believe RigNet is more favorable than SEACOR Holdings.
Insider & Institutional Ownership
99.3% of RigNet shares are owned by institutional investors. Comparatively, 94.0% of SEACOR Holdings shares are owned by institutional investors. 1.2% of RigNet shares are owned by company insiders. Comparatively, 13.4% of SEACOR Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
RigNet beats SEACOR Holdings on 7 of the 12 factors compared between the two stocks.
RigNet Company Profile
RigNet, Inc. (RigNet) provides customized systems and solutions serving customers with data networking and operational requirements. The Company provides voice and data network, video conferencing and monitoring, crew welfare, asset and weather monitoring, and real-time data services. It operates through two segments: Managed Services, and Systems Integration and Automation (SI&A). The Managed Services segment provides remote communications services for offshore and onshore drilling rigs and production facilities, as well as, support vessels and other remote sites. The SI&A segment provides customized solutions for customer telecommunications systems. As of December 31, 2016, the Company provided remote communications and collaborative services to approximately 500 customers reaching approximately 900 remote sites located in approximately 50 countries on six continents. It provides managed remote communications, engineered telecommunications solutions and applications.
SEACOR Holdings Company Profile
SEACOR Holdings Inc., is engaged in the business of transportation and logistics, alcohol manufacturing, merchandising, and risk management consultancy. The Company’s segments include, Inland River Services, Shipping Services and Illinois Corn Processing. Inland River Services segment operates river transportation equipment used for moving agricultural and industrial commodities and petroleum and chemical products. Shipping Services segment operates a fleet of United States flag marine transportation related assets. Illinois Corn Processing segment produces alcohol used in the food, beverage, industrial and petrochemical end-markets. The Company also offers emergency and crisis services, lending and leasing activities, and noncontrolling investments in various other businesses.
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