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

Profitability

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

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

Institutional & Insider Ownership

19.9% of Profire Energy shares are held by institutional investors. Comparatively, 0.9% of CGG shares are held by institutional investors. 58.7% of Profire Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

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

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

Profire Energy presently has a consensus target price of $2.15, indicating a potential upside of 64.12%. Given Profire Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Profire Energy is more favorable than CGG.

Valuation & Earnings

This table compares Profire Energy and CGG’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Profire Energy $24.60 million 2.67 $2.27 million $0.01 131.13
CGG $1.13 billion 0.09 $358.80 million ($26.59) -0.17

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.

Risk and Volatility

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

Summary

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

Profire Energy Company Profile

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.

CGG Company Profile

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.

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