Financial Review: Oil States International (OIS) & Natural Gas Services Group (NGS)
Oil States International (NYSE: OIS) and Natural Gas Services Group (NYSE:NGS) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitabiliy, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Valuation and Earnings
This table compares Oil States International and Natural Gas Services Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Oil States International||$676.26 million||2.03||$38.40 million||($1.01)||-26.29|
|Natural Gas Services Group||$68.98 million||4.83||$27.05 million||$0.33||78.03|
Oil States International has higher revenue and earnings than Natural Gas Services Group. Oil States International is trading at a lower price-to-earnings ratio than Natural Gas Services Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Oil States International and Natural Gas Services Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oil States International||0||9||4||0||2.31|
|Natural Gas Services Group||0||0||3||0||3.00|
Oil States International currently has a consensus price target of $36.75, indicating a potential upside of 38.42%. Natural Gas Services Group has a consensus price target of $34.33, indicating a potential upside of 33.33%. Given Oil States International’s higher possible upside, research analysts plainly believe Oil States International is more favorable than Natural Gas Services Group.
Volatility and Risk
Oil States International has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Natural Gas Services Group has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
This table compares Oil States International and Natural Gas Services Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oil States International||-7.52%||-3.94%||-3.37%|
|Natural Gas Services Group||6.06%||1.80%||1.43%|
Institutional and Insider Ownership
88.0% of Natural Gas Services Group shares are owned by institutional investors. 2.0% of Oil States International shares are owned by company insiders. Comparatively, 6.9% of Natural Gas Services Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Natural Gas Services Group beats Oil States International on 8 of the 13 factors compared between the two stocks.
Oil States International Company Profile
Oil States International, Inc., through its subsidiaries, provides specialty products and services to oil and natural gas related companies throughout the world. The Company operates as a technology-focused energy services company. The Company operates through two segments: Offshore Products and Well Site Services. Through Offshore Products segment, the Company provides engineered products and services for offshore oil and natural gas production systems and facilities, as well as certain products and services to the offshore and land-based drilling and completion markets. The Company’s well site services segment includes a range of products and services that are used to drill for, establish and maintain the flow of oil and natural gas from a well throughout its life cycle. The Company operates in active oil and natural gas producing regions, including onshore and offshore the United States, Canada, West Africa, the North Sea, South America and Southeast and Central Asia.
Natural Gas Services Group Company Profile
Natural Gas Services Group, Inc. is a provider of small to medium horsepower compression equipment to the natural gas industry. The Company focuses primarily on the non-conventional natural gas and oil production business in the United States, such as coal bed methane, gas shale, tight gas and oil shales. The Company manufactures, fabricates and rents natural gases compressors that enhance the production of natural gas wells and provides maintenance services for its natural gas compressors. In addition, it sells custom fabricated natural gas compressors to meet customer specifications dictated by well pressures, production characteristics and particular applications. It also manufactures and sells flare systems for oil and gas plant and production facilities. The Company’s operating units include Gas Compressor Rental, Engineered Equipment Sales, Service and Maintenance, and Corporate.
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