Seventy Seven Energy (NYSE: SSE) and Basic Energy Services (NYSE:BAS) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitabiliy, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Profitability

This table compares Seventy Seven Energy and Basic Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seventy Seven Energy -18.94% -23.32% -11.29%
Basic Energy Services -62.32% -153.34% -24.57%

Valuation & Earnings

This table compares Seventy Seven Energy and Basic Energy Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seventy Seven Energy N/A N/A N/A N/A N/A
Basic Energy Services $599.16 million 1.19 -$48.44 million N/A N/A

Seventy Seven Energy has higher revenue, but lower earnings than Basic Energy Services.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Seventy Seven Energy and Basic Energy Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seventy Seven Energy 0 0 0 0 N/A
Basic Energy Services 0 9 3 0 2.25

Basic Energy Services has a consensus target price of $20.13, suggesting a potential downside of 26.68%. Given Basic Energy Services’ higher probable upside, analysts clearly believe Basic Energy Services is more favorable than Seventy Seven Energy.

Institutional & Insider Ownership

97.4% of Basic Energy Services shares are held by institutional investors. 11.1% of Basic Energy Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Basic Energy Services beats Seventy Seven Energy on 5 of the 8 factors compared between the two stocks.

Seventy Seven Energy Company Profile

Seventy Seven Energy Inc. is a diversified oilfield services company. The Company provides a range of well site services and equipment to the United States land-based exploration and production (E&P) customers operating in unconventional resource plays. The Company’s segments include Drilling, Hydraulic Fracturing and Oilfield Rentals. The drilling segment is operated through its subsidiary, Nomac Drilling, L.L.C., and provides land drilling services for oil and natural gas E&P activities. The hydraulic fracturing segment is operated through its subsidiary, Performance Technologies, L.L.C. (PTL), and provides high-pressure hydraulic fracturing or frac services and other well stimulation services. The Company’s oilfield rentals segment is operated through its subsidiary, Great Plains Oilfield Rental, L.L.C. (GPOR), and provides premium rental tools and specialized services for land-based oil and natural gas drilling, completion and workover activities.

Basic Energy Services Company Profile

Basic Energy Services, Inc. provides a range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. The Company operates through the segment, which include Completion and Remedial Services, Fluid Services, Well Servicing and Contract Drilling. The Company’s operations are managed regionally and are concentrated in the United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, California, Ohio and Pennsylvania. Its operations are focused on liquids-rich basins, as well as natural gas-focused shale plays characterized by prolific reserves. It has a presence in the Permian Basin and the Bakken, Eagle Ford, Haynesville and Marcellus shales.

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